- Bitcoin has just crashed by over 20%, with its price losing over $1200 in less than an hour.
- The coin has lost more than $22 billion from its market cap, and it took the rest of the market with it.
- The cause of the crash is unknown, although many believe that it is a consequence of WHO declaring a global pandemic, causing investors to flee the crypto market, and massively purchase available stablecoins.
Bitcoin (BTC) market cap has just lost $22 billion as the coin’s price dropped from $7,360 to barely above $6,000. This is the first time that the coin has seen such a severe crash since May 2019, when it lost around 20% of its value in less than a day.
According to information from CoinMarketCap, the drop that the coin has experienced in the last hour represents a 21.34% drop.
The initial drop was even more severe, and the coin actually lost $1,500, briefly dropping to $5,900 before a recovery took place, taking it back up to $6,700. After that, the price dropped yet again to $6,400, and then to the current $6,000.
The changes are happening extremely rapidly, and the coin appears to be more volatile than ever. The coin’s market cap currently sits at $111,14 billion, down from almost $142 billion which it had this time yesterday.
The altcoin market follows Bitcoin’s crash
The rest of the market is not performing better, either. Ethereum, the second-largest coin by market cap, is currently spiraling down by 30.80%, with its current price sitting at $136.62, while XRP, the third-largest crypto, currently sees a drop of 26.15%, with a price of $0.153.
The coin that is currently seeing the largest losses among the top 10 list is Tezos (XTZ), the 10th largest crypto, which is losing 38.31% at the time of writing. Meanwhile, Bitcoin Cash is dropping by 33%, Bitcoin SV by 33.97%, Litecoin by 30%, EOS by 31.46%, and Binance Coin by 32.15%.
Meanwhile, the volume of Tether (USDT) is on a sharp rise, as traders and investors around the world are trying to escape the crash by purchasing stablecoins. As for the cause behind the global sell-off, it still remains uncertain, although it is most likely the result of the World Health Organization (WHO) declaring the coronavirus outbreak a global pandemic.