Bitcoin lost almost $20,000 from it’s all-time high of above $69,000 just a few weeks ago, going as low as $49,482 today. The price drop has seen the king crypto drop 22% from November 10th. The drop has seen Bitcoin slice through the $60,000 psychological level time and time again, shedding $20,000 from the all-time high.
The second largest crypto, Ethereum dropped almost 8% to $4,209. If both coins keep up like this, it will be their biggest fall since September. So far, Bitcoin has more than doubled up its price this year, and Ethereum has gone up about six-fold its price. Both broke records last week amidst a fervor for cryptocurrencies caused by a conjectural demand and controversial arguments that they can increase inflation risks.
Some bulls seem to think that the dip is caused by the new tax-reporting requirements for digital assets that are a part of the $550 billion infrastructure bill President Joe Biden signed off on Monday. However, the reason isn’t quite clear.
Most bulls are expecting the leading crypto to remain between $50,000 to $75,000 in the next 12 months while some seem to believe that Bitcoin will only drop some more. It is still believed by some that it’ll reach the $100,000 mark before the year ends. The money that’s been spent on Bitcoin products and funds have hit a record $9 billion so far this year, and $151 million total last week in its 13th consecutive week of inflows.
At the time of writing, Bitcoin is continuously testing the $49,000 support while hitting a new daily low of above $48,000. Initially, traders have been cautious about Bitcoin breaking the previously untouchable support of $60,000, and approximately $1 billion has been lost from highly leveraged positions that were liquidated.