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Why Is Bitcoin Price Crashing Today?

Bitcoin crashes at $3000 in 2 hours

Bitcoin price crashed nearly 10 percent today to a low of $59,480. Today’s plunge has caused the crypto market to lose more than $300 billion in value, but what caused the crash?

A crypto massacre

Bitcoin price has crashed 9.7% today and is at around $60,100 at the time of writing. The BTC price even briefly fell to a low of $59,490, which is the lowest point since October 28. According to data from Coinglass, $808 million worth of long positions have been liquidated in the past 24 hours. The fall of BTC has also dragged the rest of the crypto prices down.

In fact, Ethereum, the second-largest cryptocurrency, is also down more than 10%, reaching as low as $4,202.

Today’s carnage comes shortly after the two largest cryptos hit new highs. On November 9, both Bitcoin and Ethereum hit new all-time highs of $69,0444 and $4,878 respectively.

BTC 4-hour chart – Source: Tradingview

What caused the Bitcoin price crash?

Although the exact reason behind the price crash is up for debate, there are several bearish developments that could be the cause of the price drop.

US President Joe Biden signed a bill on infrastructure investment and jobs on Monday. This made it clear that more crypto tax had to be paid by entities that can now be defined as ‘brokers’, even if these entities do not actually handle funds.

Senators Cynthia Lummis and Ron Wyden have spoken out strongly against the bill. Both have now introduced an alternative legislative initiative that excludes certain actors from tax filing obligations.

Also, China’s National Development and Reform Commission (NDRC) announced today that it will take extra tough action against crypto mining activities. For example, the country wants to impose higher electricity prices on companies that ignored the ban earlier this year.

These two news stories, coupled with the fact that crypto investors seem to be taking profits, seem to be the reason for today’s crypto crash. However, despite today’s crash, many analysts still seem bullish for BTC. A correction is necessary.

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