Bitcoin suffered a slight drop in recent days, with the crypto industry taking a $400billion hit.
Bitcoin Drops As Crypto Industry Takes $400Billion Hit
Wednesday 20th March saw a slight dip for Bitcoin, as the cryptocurrency dropped below $61,000 and maintained a sell-off that started following an all-time high last week.
According to CoinDesk data, Bitcoin had made its way back to trade at around $62,900 – which was a drop of 2.5% within 24 hours.
It has been a strong year for BTC so far, increasing by 124% from 2023 and reached a new record for value last week – pricing at $73,800.
In January, Bitcoin’s value was boosted by the release of the spot Bitcoin exchange-traded funds in the USA and the imminent halving.
Halving is a key event in Bitcoin’s code, which impacts the speed in which the cryptocurrency is release into the market.
The Crypto market has taken a staggering hit as of late, as all digital coins have dwindled since Bitcoin’s record breaking price last week.
According to Coinmarketcap, the overall market had decreased by $210bn on Wednesday morning – noting a huge fall.
Overall, the entire Cryptocurrency scene had dropped by $400bn in value, with the likes of Solana also falling drastically.
CryptoQuant revealed in a recent report that short-term holders are the reason for the recent spike, as they sold their Bitcoin for profit on March 12th.
Vijay Ayyar, vice president of international markets and growth at crypto exchange CoinDCX, confirmed this reasoning in a recent interview.
He said: “We’ve seen 20-30% pullbacks in previous Bitcoin bull markets as a normal occurrence when things start heating up. And we definitely had many signs over the past week of things heating up quite a bit.
The president also said that if Bitcoin falls below $60,000, then the cryptocurrency may continue to decrease in the coming weeks – possibly reaching $50,000.
