On Sunday, Bitcoin recorded its biggest intraday fall of 8.5% to $55,810.32 since February 2021. The massive nosedive comes just a few days after the biggest crypto coin had reached its record high of $64,869.78 ahead of the direct listing of the cryptocurrency exchange Coinbase Global Inc. on the Nasdaq.
Other crypto coins followed suit. The second-largest token Ether fell around 18%. Meanwhile, other cryptocurrencies were also feeling the pinch of the plunge that may have been caused due to the US Treasury’s speculated crackdown on money laundering via digital assets.
However, the current fall isn’t as drastic as the rise of cryptocurrencies in the last year. Bitcoin surged over 800% in 2020 and is now valued at over $1 trillion. One of the major factors fuelling the rally of Bitcoin is its mainstream acceptance by digital payments firms such as PayPal, Visa, and MasterCard, among others. Bitcoin is now also offered by Wall Street firms such as Morgan Stanley to some wealthy clients.
However, several governments across the world are increasing their scrutiny on cryptocurrencies. Back home, the Indian government is reportedly planning to ban the trade of cryptocurrencies with the upcoming bill that might prove to be the world’s strictest policies on digital coins. A Reuters report suggests that the bill would criminalise possession, issuance, mining, trading and transferring crypto-assets.
In January 2021, European Central Bank President Christine Lagarde had called out on Bitcoin’s role in facilitating criminal activity. He said that the cryptocurrency has been enabling “funny business.”