Bitcoin and other influential cryptocurrencies seem to have taken a mighty fall, which seems to have been instigated by a decline in the value of Bitcoin. The decline started immediately after the Bitcoin price hit an all-time high of $58,330.57 on February 21, 2021.
Shortly after midnight February 21st, Bitcoin took the first hit and prices dived to about $57,500 before it witnessing another drop to $56,500 in a matter of hours. There seemed to be an engine failure at the time since at such hours the trading volume is normally low.
At the moment, it appeared as though Bitcoin was just taking a break from its long tiring roller-coaster bull shish ride. But things an ugly turn on February 22 around noon when the price of Bitcoin dropped to around $52,000.
And as though it was enough, the digital currency took yet another hit and dropped further to $45,290.59 on February 23 igniting fears that the Bears’ power was overpowering the Bulls’ power despite the backing of the many corporations that have invested in the cryptocurrency.
And although Bitcoin prices have bounced back above $50,000, the market is still too volatile. On February 25 for example, the digital currency registered a low of $48,240.07 and a high of $51,948.97, showing that the retracement could be far from over.
Why have other cryptocurrencies also dropped?
The question in the minds of most traders or investors is however not why Bitcoin has retraced but why the rest of the cryptocurrency market seems to be mirroring the bearish trend.
Some of the cryptocurrencies that have registered a similar bearish trend over the same period include Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Polkadot (DOT), Dogecoin, Litecoin (LTC), Chainlink (LINK), Bitcoin Cash (BCH), Stellar (XLM), Aave (AAVE), EOS (EOS), TRON (TRX), Neo (NEO), Compound (COMP), MAKER (MKR) and Zcash (ZEC) among many others.