Bitcoin fell almost $ 3,000 with levels close to all-time highs.
At around 2:15 am UTC, Bitcoin (BTC) began to drop significantly as its value fell below the previous support area at around $ 18,474.
Spot volume on major exchanges also rose sharply, according to CoinDesk 20, as Bitcoin's 24-hour range fell to $ 19,474-16,514, the sharpest decline since the market crash in March. Today's drop means a drop of more than 12% in 24 hours.
Bitcoin rose slightly to $ 17,040 last time.
“I think this is an amendment before we go over $ 20,000,” said Ki Yong Joo, CEO of analytics firm CryptoQuant. "Other long-term on-net indicators such as BTC and stablecoin reserve suggest that potential buying pressure is still prevailing."
While the reason for the drop is not entirely clear, the move towards the sell-off came at a time when Coinbase CEO Brian Armstrong raised concerns on Wednesday about rumors of the Treasury Department's plans to try to track down the owners of offline cryptocurrency wallets.
This also happened shortly before the expected flow of bitcoins in the market, which was frozen on the OKEx exchange due to the lack of a key holder. OKEx resumed withdrawals at 08:00 UTC, some time after the bulk dropped on Thursday.
The downturn wiped out $ 950 million in positions on exchanges, according to Bybt, a derivatives data provider.
“The latest drop in BTC prices is the first of many new money tests to determine if they have the vision and the courage to truly invest in the future of digital finance, or if they will just repeat 2018 and leave the market. Said Jehan Chu, co-founder and managing partner of Hong Kong-based investment and trading firm Kenetic.
Most other well-known cryptocurrencies also fell, with Chainlink and Cardano hitting losses across the board, shedding 18.9% and 16.7%.