The crypto market suffered a major setback over the weekend, with Bitcoin and other Altcoin values plummeting in hours. This comes after a week of extremely bullish market action, only for the rally to come to a halt over the weekend due to a major sell-off by hodlers.
The market drop knocked 8% off the valuation of the crypto market and knocked $10,000 off the price of Bitcoin. The value of the crypto market capitalization also plummeted as a result of the decline. Its current value is $2.08 trillion.
On Sunday, the most valuable cryptocurrency dropped to $52,000, down from $61,271 on Saturday. The price of Altcoins dropped in tandem with the price of bitcoin, with ETH leading the way with an 11% decreasce to $1,978. However, the top Altcoin has recovered and is currently trading at $2,174 at press time.
After a week of big rises, XRP is down 20%, and BCH is down 20%, among other coins.
Why is the crypto market suddenly collapsing?
Authorities in the United States are reportedly planning to prosecute many financial institutions for allegedly using cryptocurrency to launder money. As a result of the rumor, many cryptocurrency investors started selling their holdings, causing the price to plummet.
The US authorities, on the other hand, have yet to confirm whether or not the reports are accurate. When authorities finally speak out about the rumor, particularly if it is real, there will be more setbacks for crypto prices.
Another factor contributing to the market’s decline is a 30% decrease in miners’ hash rate. According to local Chinese reports, the drop was caused by a power outage in China’s Xinjiang province, which is home to the country’s largest Bitcoin mining operations.
The crypto market‘s sudden price drop over the weekend is yet another example of how unpredictable it is.