The major cryptocurrency plummeted early on Tuesday as investors shed some momentum from the rally, which prompted the price of digital assets to soar to alarming levels.
CoinDesk data shows that the price of Bitcoin fell by about 14% to 46,605.79 US dollars, and fell to 44,964.49 US dollars overnight, the largest one-day drop in the next month.
Dogecoin, a cryptocurrency inspired by memes, has become an online fanatic and has recently plummeted by more than 20% to about 4.4 cents. Ether, second only to Bitcoin in market value, fell nearly 19% to 1,455.56 US dollars.
According to Coinmarketcap.com, the sell-off only caused the total value of the cryptocurrency market to drop by about 1
Tesla CEO Elon Musk-one of the most prominent proponents of cryptocurrencies-seemed to have caused a slump over the weekend and announced in a tweet that even his electric car manufacturer was in the previous generation With $1.5 billion invested in the currency, the prices of Bitcoin and Ethereum “seemly high.” .
On Monday, the skeptical comments of Treasury Secretary Janet Yellen (Janet Yellen) also scared the market, who called Bitcoin “extremely inefficient” and “highly speculative.”
According to reports, Yellen said at a meeting: “People should beware that this can be very unstable, and I do worry about the potential losses that investors may suffer.”
The week after Bitcoin broke through $50,000 for the first time, Tuesday’s plunge highlighted the volatility of cryptocurrencies.
In recent months, as more and more institutional investors and major companies such as Tesla and Mastercard have begun to regard digital coins as more mainstream investment assets, cryptocurrency prices have soared.
But skeptics believe that such crazy price fluctuations may become an obstacle to wider adoption of cryptocurrencies.
Craig Erlam, a senior market analyst at OANDA, told Reuters: “The kind of gathering we see is unsustainable and will only cause this kind of correction.”