- Bitcoin crashed today causing panic among smallholders in the cryptocurrency market on Monday, experts speak against panic
- The decline in the cryptocurrency price had occurred after a large holder moved bitcoin worth $125 million
- Bitcoin remains stronger than gold which also crashed during the day's trading
Bitcoin has again crashed, causing panic among smallholders. The decline had occurred the same day a large holder moved holdings from the most popular cryptocurrency market.
The digital asset crashed to $56,098 per bitcoin, declining 2.97 percent. It had hit a high of $58,407 within the last 24hours. This means over $2000 was wiped off investors' investment.
The dip affected the market capitalisation, which plunged from $1.08 trillion to $1.04 trillion in one day, as at the time of filing this report. The crash has created ripples in the bitcoin market, dragging confidence down.
Prior to the crash, a whale, which is used to describe an individual or institutional investor with large holdings, had moved 2,210 bitcoin worth $125 million in block 675,713, according to BTC Block Bot.
Following the movement by the whale, the market price began to fluctuate. On the day bitcoin crashed, investor and founder of Microstrategy, Michael Saylor, said:
"If we assessed volatility in athletics, we would find that the winners are more volatile than the losers."
While investment expert, Olumide Adesina said Crypto dips are meant for buying, not crying, after the slumped price triggered panic.
Despite the fall, the crypto still stood strong when compared to the officially recognised asset, gold. The physical asset crashed by 0.33% to end trading at $55,929 per kilogram.
Bitcoin had been challenging gold's relevance as the most preferred asset among investors since it was created in 2009. It had surpassed the ancient asset twice in three years, but now comfortably sits above gold.
The strength of cryptocurrency against gold has given bitcoin some sense of belonging among asset class after years of being described as a ponzi scheme by most Central Banks across the world.
Meanwhile, Legit.ng had earlier reported that Cristiano Ronaldo becomes the first footballer to receive cryptocurrency as payment.
The player was awarded 770 fan tokens by his club, Juventus, after achieving a career goal milestone following an hattrick against the Italian club, Cagliari.
Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.