An unconfirmed report from the US Treasury Department that several financial institutions laundered money with cryptocurrencies caused prices to fall in the cryptocurrencies market.
According to U.Today, bitcoins hit $ 51,000, and altcoins suffered even more severe losses.
The title that apparently caused the crash was posted by a mysterious Twitter account called FXHedge.
The tweet cut $288 billion in cryptocurrencies market volume within 54 minutes of publication. At the time of writing, the tweet has received more than 4,700 likes, despite citing an anonymous source and disabling comments.
Jake Chervinsky, general counsel at Compound Finance, wrote that he does not consider the tweet valid because the money laundering cases are under the jurisdiction of the US Department of Justice. He added that the simultaneous accusation of several financial institutions was "unusual".
* It should be noted that FXHedge has a history of false claims before.
Source:
https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap?ampThe tweet:
https://twitter.com/Fxhedgers/status/1383611847144730626These types of tweet by the government have been around for many years but that could not create such dips in the market.They all try to manipulate the prices by creating FUD in the market and traders panic sell their Bitcoins contributing more to make situation worse.Money laundering has been one of the main distracting factor for government to give possible explanation that why they don't want to promote such decentalized currencies but it is just an excuse because fiat is also used for same illicit activities. The possible reasons for such price fall according to my perspective are:
1)Turkey ban on Bitcoin related transactions that have eroded the funds from Bitcoin market which was some negative news from such nation.
2)The insane rise in Dogecoin have lead the investors transfer their funds from Bitcoin to doge in greed of profits in short period that's why there were insane pumps in Dogecoin within a week.
3)China further prompting their CDBC the digital Yuan which were somehow distracting investors to further invest in bitcoin that they might issue some negative news for crypto market.
But all these are temporary dips and normal correction for long term holders who didn't care much about these price dumps because we still are at $55k which is more than 2017 crash so hope bull market will soon hit the graph so stay calm and Hold your coins.