Bitcoin Crashes to $40,000 as Crypto Market Stumbles
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Leading cryptocurrency Bitcoin crashed on Thursday evening, falling by more than 7% as it neared the $40,000 support level
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Fears about geopolitical concerns and the intense scrutiny of cryptocurrency by law enforcement have contributed to the recent crash of the market.
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The world’s second-largest crypto Ethereum is down more than 8% to $2,895 as CoinMarketCap estimates the current market cap of cryptocurrencies to be $1.8 trillion
The cryptocurrency market felt red on Thursday evening as leading coins like Bitcoin and Ethereum lost several percentage points during the recent crash. Flagship crypto-asset Bitcoin fell by more than 7%, according to CoinMarketCap, dropping to $40,647. This represents the largest single-day drop for the leading cryptocurrency since January 21.
The second-largest asset Ethereum has suffered a slightly more significant fall, losing more than 8% in value within 24 hours. The current price of $2,895 means that Ethereum is now about 41% off its all-time high of $4,892 which was attained in November 2021.
It’s not just the top two coins suffering, as most of the market remains in the red. According to CoinMarketCap, the entire cryptocurrency market has lost more than 7% and is valued at just over $1.8 trillion. Other assets such as Solana, Terra, Polkadot, and Shiba Inu have suffered percentage losses of about 8%. The biggest loser is Rally (21%), while Filecoin and Theta have lost about 12% each in the past 12 hours.
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Experts have attributed the latest market crash to the threat of Russia’s invasion of Ukraine, which has forced Wall Street to de-risk.
Prices may also have been impacted by the threat of a further crackdown on crypto by the US government. The FBI announced a new crypto division on Thursday, while the DoJ named a director for its recently-established crypto team.
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