Bitcoin price is currently 10% below its recent highs, as the leading cryptocurrency continues its slump after early last week’s sell-off. Since hitting a new all-time high of $61k earlier, BTC has continued to face downward pressure, hovering around the $54,000 price level. The past week’s volatility has resulted in bulls losing nearly $2.6 billion in liquidations, according to ByBt. At the time of writing, BTC is changing hands at just below $54,000.
Bitcoin continued its downtrend alongside the equities market.
The reason speculated behind the recent slump in bitcoin’s price was due to reports claiming that 18,961 BTC was flowing into crypto exchange Gemini. With an alleged $1 billion worth of Bitcoin being dumped, investors and speculators began to take profit in anticipation of a steeper sell-off. However, this was later proven false as the transfers turned out to be internal. Since then, Bitcoin has failed to bounce back above $60,000 and continued its downtrend alongside the equities market. With stimulus checks given to US citizens having less of an impact than previously anticipated, the digital asset could not gain upward momentum to retest its recent all-time high.
Indian government is planning to ban crypto.
The other major reason for bitcoin’s recent downtrend was the news that the Indian government is planning to ban cryptocurrency entirely soon. As reported earlier, the Indian government has proposed a bill to ban all private cryptocurrencies in the country. Many are speculating that Bitcoin will brush aside this small correction and continue its rally. The leading cryptocurrency has seen a massive bitcoin rally this year as it reached its all-time of $61,000 earlier this month. However, regulators across countries have expressed concern over the growing adoption of bitcoin and other cryptocurrencies.