The Price of Bitcoin is Plunging Sharply

Cryptocurrency bitcoin has had to give up almost 15 percent of its value in a day. That is the most substantial fall in the price since the currency’s value has continued to rise in recent weeks and reached a new record high last week.

 

According to experts, this may be due to the possible measures against money laundering of digital assets that the US Treasury wants to take.

The price of bitcoin, the largest crypto coin, was 8.5 percent lower on Sunday at the beginning of the afternoon at more than 54,750 dollars, converted almost 46,000 euros. Last Tuesday, the value of the currency was more than $ 62,500. Other crypto coins were also affected by the possibly imminent measures. The third-largest crypto coin, Ether, plunged nearly 18 percent in total.

Investors have probably been incredibly excited about cryptos lately as Coinbase, the largest digital currency trading platform in the United States, went public last week. More and more large companies, such as automaker Tesla, payment company PayPal, and the American bank Morgan Stanley, are accepting crypto coins as a means of payment.

There are concerns about the instability of cryptocurrency. Governments are investigating the risks of the payment method as more and more investors are interested in cryptos. Jerome Powell, the boss of the US central bank, the Federal Reserve, for example, compared bitcoin with gold last week. He argued that it is more of a vehicle for speculation than actual payments. Christine Lagarde, the boss of the European Central Bank, has also previously criticized cryptos and facilitated criminal activities.

The price of bitcoin has continuously shot up and down over the past month. The total value of all crypto coins together was over 2.1 trillion dollars, or 2130 billion dollars, last week. The crypto market has doubled in value in more than two months.

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