Bitcoin prices drop to three-week low

After Coinbase’s recent debut on the Nasdaq, the price of Bitcoin plummeted to a three-week low. During the Asian session, the largest cryptocurrency by market value fell from approximately USD 60,000 to USD 52,148 in 15 minutes. Liquidated nearly USD 4 billion in derivatives market positions.

The price of Bitcoin climbed to almost USD 65,000 per Bitcoin this week. It’s an increase of about 800% over the same period last year. However, Bitcoin then fell back to early Sunday morning.

The second-largest crypto, Ether, has fallen by nearly 13%.

The U.S. Securities and Exchange Commission (SEC) continues to file lawsuits accusing the company and its senior management of misleading investors. However, the XRP, a cryptocurrency controlled by Ripple, has soared 500% in the past six months.

The memetic cryptocurrency Dogecoin, which focuses on payments, has recently seen a substantial retail price increase. Dogecoin increased as Coinbase has listed on the Nasdaq on April 14.

Bitcoin price is still twice more compared to the beginning of the year. Due to increased interest in decentralized finance (DeFi), Ethereum, Cardano, and similar cryptocurrencies surged last year. It happened before the emergence of crypto bulls in 2021.

As the bull market accelerates, the price of Ethereum has climbed to a record high in recent weeks. It has risen by more than 1,000% in the past 12 months.

In the days before Coinbase went public, Bitcoin increased to more than $60,000 and hit a record high of $64,801 on April 14.

What caused Bitcoin price collapse?

The exact reason for the price collapse of Bitcoin and cryptocurrencies is currently unclear. However, some have pointed to the power blackout in China knocking to those who maintain the Bitcoin network.

Besides, due to rumors that the U.S. Treasury Department plans to charge several financial institutions for money laundering using cryptocurrencies, market sentiment may deteriorate. CoinDesk cannot autonomously verify any pending government actions.

Also, CNBC released a month-long new report on Twitter last night about India’s plans to ban the country’s cryptocurrency.  Turkey might also ban crypto trading, which the government announced last week.