Bitcoin collapses: what is happening to the crypto market?

Down virtually all cryptocurrencies… what’s the reason? Behind the crash of Bitcoin and of all the other major cryptocurrencies, there would be news – yet to be confirmed – of an investigation by the US Treasury into an unknown number of banks and financial institutions.

The accusation is serious: the banks have in fact used cryptovalute for a large scheme of money laundering, which would have given way to the investigations of the US Treasury, which are however, we repeat for the avoidance of any misunderstanding, yet to be confirmed.

Overall, the circulation of the news triggered a wave of sales for a grand total of over 7 billion dollars in value, for one of the crash criptovalute most important in recent months.

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What happened in the night?

Let’s proceed in order. When in Italy it was around 3 in the morning, huge sales have started on virtually all cryptocurrencies. Bitcoin he lost over 12% in a few minutes, while the same happened to Ethereum and cascading to all other cryptocurrencies, also crossing the sectors of utility token and of decentralized finance.

To trigger the wave of sales, at least according to the main analysts, the tweet of @Fxhedgers, always reliable and full of rumors insider, which has precisely indicated the next accusation, by the US Treasury to an unspecified number of banks. Among other things, extremely serious allegations: cryptocurrency laundering, although the scope of the alleged operations is, of course, still secret. As well as the actual launch of an investigation towards important groups has to be confirmed.

What to do during such a crash?

There are several paths we can take – and which we have usefully summarized in our guide to cryptocurrency collapse – which indicates how you can move to protect your capital, and also to take advantage of any recoveries.

• If we are in trouble today, it means we are investing too much

This is a fundamental point, which unfortunately too few publications dealing with cryptocurrencies explain to their readers. Those who got into big trouble this morning, faced with a generalized decline of 10%, are probably allocating an excessive part of their capital to the world of cryptocurrencies.

It is a good opportunity to rethink the composition of your investment portfolio, in order to shield yourself more from events of this type, which in the world of cryptocurrencies, including Bitcoin, are now cyclical.

• Buy the dip: ma con criterio

Among cryptocurrency enthusiasts, this type of event always triggers invitations to the buy the dip, or to buy at the price point that has dropped significantly. Here too, however, a certain precaution should be exercised. Can we afford to increase our exposure to the world of cryptocurrencies? Or not? Another possible crash, in what conditions would it leave us?

The good news: Bitcoin held on to the third support

There is however the glass half full to look at. Bitcoin saw two supports jump in very rapid succession, with the third holding instead, pass us the slang term, hit.

This is a sign of a mature market, especially with regard to cryptocurrencies with greater capitalization. Let’s imagine such news about a particular action. Are we sure the crash would have stopped at 10%? We do not. And history seems to prove us right.

The predictions on Bitcoin and other cryptocurrencies are still valid

We have always held cryptocurrency predictions always updated, which identify 1-month target prices, ad 1-2 years and also to 3-4 years. All those that we find on our site are, for now, to be considered as still valid.

Despite the news, if it were to be confirmed, it would be a major one – for the moment there is no reason to think about further collapses. We from Criptovaluta.it, as always, we will continue to keep you updated on market conditions and everything you need to know about the crisis, crisis responses and any resumes.

Meanwhile, the Bitcoin markets begin to recover

When it was middle of the night in Italy, Bitcoin reached $ 53,000, burning well over 10% of its value. After the “momentaccio”, BTC started to grow again and at the time of writing it is floating around $ 57,000.

Is the worst behind us? No one can say yet, even if these timid rises seem to leave good prospects for the near-term future. Always remembering that Bitcoin has remained firmly above 1,000 billion in capitalization and that it is at prices much higher than those of just a month ago.

Before panicking, it is necessary to look at things with the right perspective and realize that you are – something we have always said about Criptovaluta.it – in a market which is risky and which is not for weak stomachs. As he punctually demonstrated, once again, this night.

Should we worry about the US Treasury investigation?

There is still no news and / or details on this investigation, which we will not fail to follow, should it be confirmed as true, in the coming days. The situation between governments, states and cryptocurrencies continues to be tense, despite Bitcoin & co. are now a substantial part of the portfolios also of institutional investors.

Those who thought they had put these skirmishes behind them were wrong. There is still a long way to go for Bitcoin and other cryptocurrencies before they are considered on par with fiat currencies, at least by those who print these currencies. That is the states.

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