After hitting a new high earlier this week, the cryptocurrency is experiencing a downturn.
On Sunday night, the price of a bitcoin was $55,186, or 461,000 kronor. According to past data, in the past 24 hours, the price has fallen by 9.53%, or more than $5,800. Coinmarketcap.
Other major cryptocurrencies, including Ethereum, are also declining.
After a period of sharp rise, today’s prices have fallen. Bitcoin set a new record this week, after its value more than doubled this year.
Torbjørn Bull Jensen is the founder and CEO of Arcane Crypto, which develops and invests in crypto projects. He pointed out that before Bitcoin and other cryptocurrencies have a greater impact this weekend, it usually takes less time because liquidity is lower than the working day.
-We are seeing a sudden drop. I and others have been waiting for a while, Bull Jensen said in the call to E24.
Bull Jensen believes that the recent decline is related to more people sitting in a leveraged position, that is, they have borrowed money and have the opportunity to earn more from possible price increases.
Bull Jensen said that when the price drops a little, the position can be closed, and the result is that the price drops even more.
-We have seen it in several cryptocurrencies. Bull Jensen said there is a great correlation between them.
Antoni Trenchev, co-founder of crypto company Nexo, believes he will follow Bloomberg Excessive borrowing is one of several factors that may cause prices to fall today.
Trenchev also pointed out that a major power outage in China may have affected Bitcoin miners, and that after the Cannon’s debut on Wall Street, Coinbase insiders have dumped shares in cryptocurrency exchanges.
Coinbase has been directly listed («Direct listing»), so that no new shares will be printed, but those who already own shares in the company sold some of them to attract more investors.
Bloomberg The point of an article about the current price drop is about people’s speculation that US authorities may be tightening banks over the risks of money laundering through cryptocurrencies. The American financial adviser (Fincen) replied that they would not comment on the case.