This is the reason Bitcoin price plunged to $ 52,000, rumors came from the U.S. Treasury Department

When the market and Bitcoin price suddenly collapsed like today, everyone must have the same question: Why. The real answer cannot be sure. But perhaps, crypto is still a Buy the Rumor, Sell the News marketplace. And today’s story too, stemming from the following two reasons.


BTC/USD 4-hour chart | Source: TradingView

Cause the cryptocurrency market fell more than 10% today, Bitcoin price fell to $ 56,000 zone

Popular Twitter account FXHedge has reported rumors that the US Treasury Department may soon accuse some financial institutions of using digital assets to launder money. And perhaps 122,700 of his followers panicked and spread this rumor causing the market to plummet as seen.

In fact, the U.S. Treasury Department has accused individuals of using crypto assets to launder money in the past. In March 2020, the agency sanctioned two Chinese citizens and accused them of laundering stolen cryptocurrencies on behalf of Lazarus – a group that the FBI has labeled a hacking organization protected by the North Korean state. support.

The tweet, citing anonymous sources, quickly went viral.

Minutes after the tweet spread, the crypto market sank into a deep red zone, with Bitcoin falling from around $ 59,000 to as low as $ 52,800.

Ethereum dropped from around $ 2,260 to as low as $ 1,970, and Binance Coin dropped from around $ 501 to as low as $ 440.

According to analyst Bybt, the move triggered at least $ 7.9 billion of liquidations, when the price of bitcoin dropped to $ 52,000.

Bitcoin’s price started a downtrend early on Saturday, but the sharp plunge started around 3:00 UTC on Sunday. Bitcoin’s price has dropped more than 10% in the past hour, from $ 58,000 to under $ 52,000, of which around $ 4.3 billion of bitcoin long positions were liquidated.

Overall, $ 9.2 billion of crypto long positions have been liquidated over the past 24 hours.

You can see the BTC price here.

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