Bitcoin (BTC) prices have plummeted to close in on $7,200, just a day after the top cryptocurrency rallied to trade at prices above $8,000.
At the moment, Bitcoin is trading at $7,207 per unit according to data on CoinMarketCap. The world’s largest cryptocurrency that had sentiment going north has tanked over 8.74% in the last 24 hours.
In early Asian trading hours, Bitcoin tanked from about $7,880 to hit its seven-day low of $6,179 on crypto exchange Bitstamp.
The more than $1,700 lose came at a time BTC was at its most overbought and represents the highest intraday decline since January 17, 2018. Data from CoinMarketCap shows that on that day, bitcoin lost over $2,200, dropping from $11,678 to $9,402.
However, BTC went on to recover all the losses by the close of trading UTC.
That explains the rebound that has seen bitcoin recoup over 50% of the day’s earlier losses, currently trying to hold at prices above $7,200.
The rest of the crypto market has also not been spared; with other top cryptocurrencies recording major loses on the day.
The second largest crypto by market cap Ethereum (ETH) has dropped by 7.67% to trade at $231.33 at press time, while XRP has plunged more than 12.4% to trade at $0.379378.
Bitcoin Cash (BCH) has declined by over 11% on the day; Litecoin (LTC) is more than 7.5% down while the sixth largest cryptocurrency at the moment, EOS, has declined by about 8.30%.
According to CoinMarketCap, the crypto industry has seen over $21 billion wiped off its market valuation in just 24 hours. The current total market cap of the entire cryptocurrency industry is $225 billion.
Analysts have attributed the sell-off to expected profit taking as well as buyer exhaustion observed after bitcoin failed to consolidate gains above $8,200.