When Chinese regulators shut down on cryptocurrency miners in June, Bitcoin's 2021 bull run came to a stop. On Monday night, Bitcoin, Ether, and practically all other cryptocurrencies witnessed a steep drop, which looks to be linked to activities in China, but of a different kind this time.
Bitcoin's price has decreased almost 11% in the last 24 hours, and is currently trading at just over $41,600. When it sank to $40,500 around 5:30 p.m. PT, the cryptocurrency was on the verge of plunging below $40,000 for the first time. It would be the first time since early August that Bitcoin's price fell below $40,000. The all-time high for Bitcoin was $64,863, which was reached on April 14.
Ether, the second most valuable cryptocurrency by market capitalization but the most widely used in crypto transactions, has lost 12% in the last 24 hours. It is now slightly over $2,900, the first time it has dropped below $3,000 since August 8. Dogecoin is currently trading at around 20 cents, down from its all-time high of 70 cents in May.
Because bitcoin is a decentralized system, pinpointing the exact cause of a market meltdown is difficult. The price movement on Monday is assumed to be linked to China's property market, specifically the Chinese corporation Evergrande Group. Evergrande is the world's most indebted real estate corporation, with over $300 billion in liabilities, and markets throughout the world have plummeted as investors fear China would allow Evergrande to default on its loans.
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