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Major Digital Coins take Hit, Pushing Bitcoin from Recent Highs

Major Takeaways

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  • Bitcoin’s price slipped this weekend as low as $52,148.98 on Sunday morning, just a few days after hitting an all-time record peak above $64,800.
  • Ether and dogecoin followed the major cryptocurrency losing points; their prices also dropped significantly, after a week in which traders and investors were anxious about the fact that the crypto market could be in a bubble.

Digital currencies hit all-time peaks last week amid the enthusiasm around the Coinbase’s stock market entrance. The crypto exchange Coinbase became the largest digital currency company to go public on April 14th. The company’s triumphal direct listing rapidly valued Coinbase at around $100 billion (before dropping to just above $62 billion by the end of the week), strengthening all the rest of the digital currency industry.

Notwithstanding those incredible prices, the majority of traders and investors strongly believe that major crypto assets such as bitcoin are close to seeing a bubble. The recent rally by dogecoin, which began as a funny story based on the 2013 “Doge” meme, was the coin that has enhanced concerns of a bubble in the crypto market.

The rest of the digital assets such as ether and dogecoin, also experienced a downtrend during the weekend. The price of ether, the second-largest cryptocurrency by market value, slipped around 18% and dropped below $2,000 on Sunday before more recently trading more than $2,150. The crypto had also lately touched record highs, touching $2,500 rate on Thursday.

As of this writing, dogecoin, which surged more than 400% at one point last week and hit a record high of 45 cents, fell as low as 24 cents this weekend.

What exactly is triggering the crypto drop is not easy to see.

Some reports on Twitter assert that the U.S. Treasury Department could be intending to check on financial institutions for money laundering using cryptocurrency.

A tweet from the account @Fxhedgers that suggested the possibility of a crackdown, citing unnamed sources, went viral on Saturday:

“THE U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES”

The U.S. Treasury Department did not respond to the requests for comment right away.

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