Bitcoin has fallen below the $87,000 mark, causing widespread tremors in the cryptocurrency market. This price collapse affected major cryptocurrencies like Ethereum and Ripple’s XRP.
The Current Bitcoin Price Drop
As per the latest data, Bitcoin's price has dropped to $86,887, marking its lowest level since mid-November. This sharp decline came as a surprise to many investors and market experts.
Causes of the Market Crash
The cryptocurrency market downturn is attributed to several factors, including a major security breach at a prominent exchange, significant outflows from US Bitcoin ETFs, and broader market sentiment shifts. The Crypto Fear & Greed Index has plummeted to a score of 25, indicating 'extreme fear' among investors.
Crypto Community Reaction
Liquidations surged to $1.48 billion over the past 24 hours, with Ethereum and Bitcoin leading the charge. The broader crypto market has declined over 10% in the past day, with some leading coins suffering even larger losses. Ripple’s XRP, for example, has fallen 15.6% over the last day and 19.7% on the week. This reflects a bearish turn in investor sentiment, compounded by the strengthening of major currencies, which has sparked risk-off fears in global markets.
The recent turmoil in the cryptocurrency market highlights its high volatility and sensitivity to external economic factors. Investors are advised to exercise caution amid increasing uncertainty.
