Prices hovered near $56,000 late in the day Monday after previously plunging as much as 14% to $51,541 on Sunday, wiping out the majority of its gains from the previous week which led to a record-high value of $63,200 as tracked by Coindesk.
Bitcoin’s recent gains were fueled by the historic stock market debut of cryptocurrency exchange operator Coinbase, which launched a direct listing on the Nasdaq on April 14. Shares of Coinbase, which trade under the ticker COIN, opened at $381 apiece, giving the company a valuation of about $99.5 billion.
According to cryptocurrency analytics firm Bybt, bitcoin set a new record in liquidations on Sunday, resulting in roughly one million positions worth a total of about $10 billion being wiped out.
Multiple factors are believed to be connected to bitcoin’s drop.
Data website CoinMarketCap attributed bitcoin’s selloff to a blackout in China’s Xinjiang region, which reportedly powers a lot of the digital currency’s mining.
Meanwhile, some reports have speculated that bitcoin’s drop could possibly be connected to concerns that the U.S. Treasury may crackdown on money laundering through digital assets. A spokesperson for the Treasury did not immediately return FOX Business’ request for comment.
Binance’s recent quarterly burn of over 1 million BNB tokens, worth about $595 million, has also prompted fears of market uncertainty.
Despite bitcoin’s drop, many big-name crypto investors are still bullish.
On Sunday, Tyler Winklevoss, founder of Winklevoss Capital Management, along with his twin brother Cameron, and the Gemini cryptocurrency exchange, encouraged investors on Twitter to…
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