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Bitcoin Falls Below $21,000, Here’s Why

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How to short Bitcoin

Bitcoin (BTC) has fallen below $21,000 after multiple days in which the largest cryptocurrency seemed to be entering a new bull trend. There are some reasons that could explain the current price decline for BTC and other digital assets. First, the United States is ready to announce an international cryptocurrency enforcement action conducted by the U.S. Department of Justice alongside other governmental agencies. Secondly, FTX US discovered another $90 million missing from its accounts. 

Bitcoin Falls Below $21K

According to information provided by the crypto portal CoinGecko, Bitcoin has fallen below $21,000 after multiple days in which it showed strength. The largest virtual currency is now being traded at close to $20,700 and it has a market capitalization of almost $400 billion. 

The interesting thing is that in the last hour, Bitcoin fell by 3%. Other virtual currencies followed. Ethereum (ETH), the second-largest coin in the market, fell by 4.6% during the same period of time, pushing its price towards $1,520. 

Among the top 10, Binance Coin (BNB) lost 3.9%, XRP fell by 5%, Cardano (ADA) registered 5.9% losses, Dogecoin (DOGE) dropped by 8.2%, and Polygon’s price moved down by 6%. 

US Crypto Enforcement Action

One of the reasons behind the most recent price action among digital currencies is related to the fact that U.S. officials will deliver remarks at 10:30 pm IST in Washington about “an action” in the cryptocurrency industry. 

Multiple U.S. agencies will be part of the announcement, including the Financial Crimes Enforcement Network (FinCEN), the FBI, the Office of Foreign Asset Control (OFAC), and the Eastern District of New York, among others. 

There are no details about the announcement or what will be presented. However, market participants have already sold their positions, pushing the price of Bitcoin and other virtual currencies lower. 

FTX US Discovers $90 Million Were Missing

As mentioned in the beginning, another reason that could have affected Bitcoin’s stability could be related to the FTX cryptocurrency exchange. This time, FTX US informed that they discovered that $90 million were missing.

Let’s not forget that the FTX cryptocurrency exchange imploded a few months ago, creating multiple problems for crypto investors, users and the whole crypto market. Nowadays, there is an investigation conducted by the U.S. Department of Justice (DOJ) to understand what happened with a $400 million hack in November 2022. 

It will be very important to see what will happen both with FTX and the current $90 million missing, which are added to the already missing funds and to the announcement that will be made by U.S. authorities. This could have an impact on Bitcoin’s price and many other cryptocurrencies in the market.

Jonathan Gibson

Jonathan Gibson

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