The collapse of Bitcoin provoked a spectacular fall of the main altcoins

On Tuesday evening, the main digital coin exchange rate fell sharply by 18%, falling below the $ 43,000 mark for the first time since the middle of last month. The crypto market's capitalization decreased by $ 300 billion, ending up at less than $ 2 trillion.

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At the time of writing, the first cryptocurrency is trading near the mark of $ 46,400. At the same time, the cost of the leading altcoins sank by more than 20%. So, literally in a day, the Ethereum cryptocurrency lost 15%, the Binance Coin token fell by 21%, the XRP rate fell by 25%, and the Dogecoin meme coin fell by 23%.

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Following the spectacular decline in quotes and against the background of the liquidation of positions, traders of the virtual asset market reported losses of more than $ 3.5 billion. The largest cryptocurrency exchanges (Coinbase, Kraken, and Gemini) reacted to the collapse of bitcoin with serious failures in the system.

Crypto market experts have identified multiple reasons for the sharp fall of BTC:

  • Sale of large volumes of digital coins. Thus, according to official data, during the past week, miners sold 2,900 bitcoins, which harms the rate of the first virtual asset.
  • Information that the US Securities and Exchange Commission has launched an investigation against one of the leading crypto exchanges, Uniswap. This event made the participants of the crypto market think about the prospects of a chain reaction. Earlier, regulators of some states began to restrict the functioning of the Binance exchange.
  • The entry into force of the law on the recognition of Bitcoin as an official means of payment in El Salvador (along with the US dollar and the purchase of 400 BTC by the state). Against the background of this news, the main digital coin first showed growth, but later it could not stay at the level of $ 52,000. By the way, many experts of the crypto market have stated in advance that the new status of BTC in El Salvador will mark the beginning of the distance of the cryptocurrency from the highs. Despite this, the authorities of the Central American country purchased another 150 digital coins.
The material has been provided by InstaForex Company - www.instaforex.com

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