Bitcoin price pulled from $ 60,500 in the early hours of Sunday to $ 51,000 in a short time. This price action in the largest cryptocurrency by market cap has also deeply affected altcoins . In the top 100, altcoins declined by more than 30 percent.
First of all, such price movements in bitcoin and cryptocurrencies are not uncommon. Withdrawals of up to 30 percent are also common in the bull markets.
Tweet gone viral caused panic
So what lay at the root of today’s downturn? A tweet that quickly went viral was posted on Twitter just before the Bitcoin pullback . The @Fxhedgers Twitter account with 140,000 followers wrote that the US Treasury Department accused several financial institutions of money laundering using cryptocurrencies. This tweet was shared at 05.42 BST. The big drop in the bitcoin price came minutes after this tweet.
U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES -SOURCES
— FXHedge (@Fxhedgers) April 18, 2021
The claim has not yet been confirmed
While the claim put forward today has not been verified yet, the US Treasury Department has accused some people of laundering money with cryptocurrencies in the past. In March 2020, the ministry imposed sanctions on two Chinese citizens, accusing them of laundering stolen cryptocurrencies on behalf of North Korea’s state-backed hacker group Lazarus.
Bitcoin price peaked at about $ 65,000 before the US’s largest cryptocurrency exchange Coinbase went public on Nasdaq.