During the recent dip in Bitcoin, an increasing number of crypto investors have faced significant losses in their trading accounts.
According to reports, the key reasons for the dramatic dump at press time included Donald Trump’s anti-Bitcoin stance, as well as growing concerns that hackers are using the digital commodity to launder money.
In the Crypto market, roughly 149,015 crypto traders reportedly saw their account worth roughly a billion dollars wiped out for the day. The greatest single liquidation order, at $7 million, was placed on Bybit-ETH.
Bitcoin was trading at $32,784.55 at the time of publication, down approximately 10% on the day.
Donald Trump, ex-president of the world’s largest economy, has stated that he dislikes the flagship cryptocurrency because it competes with the dollar, which he wants to be the world’s legal money. He also called Bitcoin to a scam and believes that the cryptocurrency business should be strictly regulateBitcoin d.
In his most recent interview with Fox Business on Monday, the former US president revealed his skeptism. Trump went on to say that he hasn’t invested in Bitcoin and doesn’t care about it. He disclosed that while he was president, the price of bitcoin was only $6,000, a fraction of what it is now.
Furthermore, recent statistics show that institutional investor outflows from Bitcoin investment products are still climbing. Institutional clients are rapidly lowering their Bitcoin exposure, according to CoinShare’s most recent weekly report, with Bitcoin investment products suffering a record outflow of $246 million in three weeks.
Also according to data compiled by Glassnode, the entire dollar-denominated transfer volume settled by the flagship crypto network has dropped by 65 percent in the last two weeks.
The volume of change-adjusted transfers plummeted from nearly $43 billion per day to $15 billion per day.
However, the most popular crypto currency, Bitcoin, isn’t the only one experiencing a dip in on-chain activity. In the last two weeks, Ether’s dollar-denominated transfer volume has decreased by more than 60%. Though the same drop in demand in 2018 was significantly more severe at -95 percent, market analysts say it’s unclear whether this dip in demand will stay long or is a sign of things to come.
Furthermore, the crypto market is continuing its bearish trend as rumors about the world’s largest economy decreasing its stimulus emerge, as well as China and Iran’s persistent attacks on Bitcoin miners.
Investors decreased their holdings in altcoins indiscriminately and drastically, as numerous altcoins, including XRP, Cardano, Solana, BNB, Bitcoin cash, and Litecoin, suffered massive losses.
Although the long-term fundamentals of a few crypto assets remain intact, the recent negative aura surrounding their use by hackers and cyber thieves weighs on investors’ minds, especially after the US Department of Justice recently announced that they recovered approximately 63.7 Bitcoin worth $2.3 million paid by Colonial Pipeline to a criminal outfit during a ransomware attack.