The crypto market sell-off is now in its third week, with Bitcoin now trading below $32,000. With a 24-hour price drop of 2.35 percent, the leading cryptocurrency was trading at $31,652. The present price drop can be ascribed to the Chinese government’s increased Bitcoin mining and trading inspection.
As on-chain data signal additional sell-off, the leading cryptocurrency has plunged more than 50% from its all-time high of around $64,000 in April. Market sentiment has shifted to the downside in recent weeks, especially with the 50% drop last month.
The Chinese Central Bank advised four banks, as well as Alipay, to avoid any engagement in Bitcoin and cryptocurrency transactions as of yesterday. Along with tightening crypto trading restrictions, the country’s Bitcoin mining operations are also coming to a stop. Top Sichuan mining farms have shut down operations and are airlifting their mining rigs to nations like Khazkistan and the United States.
Nosedive Altcoins Amid a market sell-off
Except for Ethereum, altcoins have suffered even more than Bitcoin, with the bulk of them losing more than 10% of their value. The price of ether dipped below $2,000, hitting a fresh three-week low of $1,861, a drop of 2% in the last 24 hours.
Dogecoin was the worst performer among the top ten cryptocurrencies, with a value of $0.180, down more than 75% from its all-time high of $0.736 in May. After a 3,000 percent increase this year at its peak, the meme currency has become the biggest success story to emerge from the crypto sector.
Along with Dogecoin, Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and Polkadot also witnessed their prices plummet in tandem with Bitcoin’s depreciation. Over the last 24 hours, the crypto market has seen over $600 million in leveraged position liquidation, losing over 8% of its market cap to $1.26 trillion. Another reason for altcoin’s bloodbath is Bitcoin’s rising dominance, which has reached 46.87 percent.
