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Bitcoin bounced back above $60k following a sudden $100 billion outflow




 

On Tuesday morning, the price of Bitcoin (BTC) dropped below$60,000 as a result of a market-wide crash that saw the flagship digital currency lose more than $100 billion from its market cap.

Some other cryptocurrencies (Altcoins) also fell in value such as Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) all falling by between 5 and 10% including others.

Bitcoin is currently trading at $60,625, down 7.56% in the last 24 hours and 10.79% over the previous week, with a market cap over $1.12 trillion, after reaching a new all-time high of just under $69,000 less than a week ago.

BTC 1-day price chart. Source: CoinMarketCap

There is no obvious explanation for the price decline currently. However, some of the likely reasons contributing to the drop are an increased crackdown on Bitcoin mining in China, the rejection of a spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) of the United States, and long-term investors taking gains off the top of their investment.



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