Following a shoot in prices that hailed Coinbase's long-awaited market debut earlier in the week, the largest cryptocurrency by market value fell from roughly $60,000 to $52,148 in 15 minutes during the Asian session, liquidating nearly $4 billion worth of derivatives positions. Over the weekend, other cryptocurrencies dropped as well. Ether, the second-largest digital currency by market capitalization, fell 7%. In the days leading up to Coinbase's launch, Bitcoin surged past $60,000, reaching a new peak of $64,801 on April 14. During Sunday's Asian hours, Bitcoin fell to a three-week low of $52,148.
Here are some of the reasons that weighed on Bitcoin Price;
1) Although the exact cause of the sudden drop is unclear, reports that the US Treasury is preparing to charge some financial institutions for money laundering using cryptocurrencies might have soured market sentiment.
2) The cryptocurrency market plunged early Sunday as a result of blackouts in China. As a result, bitcoin mining rates dropped dramatically, causing prices to plummet and billions of dollars in liquidations.
3) The relatively high funding rates for longing Bitcoin were another big factor that led to the price drop. BTC tested $60,000 support after the excitement surrounding Coinase's listing started to fade, owing to this, as well as high technical resistance at $64,000-$65,000.
4) Last night, CNBC tweeted a month-old article claiming that India is considering banning cryptocurrencies. The article, which was published a month ago, was based on a Reuters storey citing an unnamed government official.
According to CoinGecko.com, the overall market cap of cryptocurrency, which had recently reached $2 trillion, has dropped to about $1.96 trillion.