Bitcoin Price Falls $8K to 3-Week Low, Altcoins Crash

Bitcoin nosedived to three-week lows early Sunday, puncturing the frenzied speculative bubble built into several alternative cryptocurrencies (altcoins) in the wake of Coinbase's recent debut on Nasdaq.

The biggest cryptocurrency by market value dropped from roughly $60,000 to $52,148 in 15 minutes during the Asian session, liquidating almost $4 billion worth of positions in the derivatives market, according to Messari's Ryan Watkins.
While the exact reason for the sudden crash is unknown, the market mood may have soured due to rumors the U.S. Treasury is planning to charge several financial institutions with money laundering using cryptocurrencies. CoinDesk has been unable to independently verify any pending government action.
In addition, CNBC last night tweeted as new a month-old report on India preparing to possibly ban cryptocurrencies in the country. That month-old report was based on a Reuters story citing an unnamed government official.
Several news services treated the CNBC report as new, possibly contributing to the sell-off as fears the partial crypto ban in Turkey announced late last week may be spreading. A message to CNBC has yet to receive a response.
At press time, bitcoin is changing hands near $54,000, representing a 12% drop on a 24-hour basis, while ether, the second-largest coin, is down almost 13%.
Other altcoins such as XRP, polkadot, litecoin and bitcoin cash have 17% to 20% in the past 24 hours, while dogecoin is nursing a 6% loss, as per CoinDesk 20 data.
Payments-focused XRP and meme cryptocurrency dogecoin recently saw huge retail-led price rallies as Coinbase’s hotly anticipated listing on Nasdaq on April 14 created general euphoria around the sector.
Bitcoin rallied above $60,000 in the days leading up to Coinbase's listing and clocked a record high of $64,801 on April 14.

UPDATE (April 18, 12:43 UTC): Updates prices and adds that a month-old report regarding India may also be spooking the market.

Also read: Retail Traders Drove Bitcoin Higher Leading Up to Coinbase Listing, Data Shows

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Omkar Godbole

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.