Bitcoin bloodbath: Cryptocurrency market plunges 18% in the last 24 hours

The crypto market saw about 170 billion dollars of wealth wiped off in the last 24 hours

The cryptocurrency market saw a wide-ranging sell-off over the weekend, as investors sold off their cryptocurrency holdings.

Bitcoin was trading at a slump of more than 19% at $32,669.20, and Ethereum fell over 22% to $1015.25 as of 12:45 PM IST on 11 January, 2021. The global cryptocurrency market capitalization fell over 18% to about $926 billion at 12 PM IST, after having crossed the trillion-dollar mark according to the website CoinMarketCap.

bitcoin bloodbath
Image source: Binance

Renewed fear

The fall in Bitcoin prices has renewed the fear of whether the cryptocurrencies are headed for a long-term downturn in their prices. Twitter was abuzz with comments that showed that the swift rise in the prices of digital currencies may have run out of steam, as investors look for more stabler assets.

Also, over the weekend, British newspaper The Sunday Times reported that one of the largest banks in Europe, HSBC, has stalled investors from transacting cryptocurrency payments or depositing money from their digital wallets into the banks UK accounts. This move comes as the investment bank grapples with its own problems related to money laundering and lax background checks of its depositors. 

Other factors that may have affected the fall in cryptocurrency prices is the run-up to the swearing-in of the U.S. presidential candidate Joe Biden next week, as investors are looking to see what concrete steps the next U.S. administration will take with respect to digital currencies.

Still positive

While the broader cryptocurrency market plunged in the early hour trades on Monday, some investors still showed their faith in the digital currency despite its price volatility. Billionaire venture capital investor Chamath Palihapitiya said over the weekend that when Bitcoin hits $100K, he would buy U.S. banking giant Goldman Sachs and rechristen it Chamathman Sachs.

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