Bitcoin nosedived in price by more than 10% on Wednesday after its value past $1 trillion and added billions to the crypto bubble overnight.
According to the details, the cryptocurrency including Bitcoin, Ethereum and Dogecoin suffered a massive plummet, losing hundreds of billions in the market cap.
However, the overall crypto bubble diminished more than 20% over the past 24 hours, according to crypto tracker CoinMarketCap.
It further added that on Wednesday, Bitcoin fell almost 22%, while Ethereum dropped 40% and Dogecoin lost 45%.
However, the largest cryptocurrency is now down more than 50% from its record of almost $65,000 set in April. The crash took bitcoin below $40,000 for the first time since February 2021.
According to the chief executive and co-founder of FRNT Financial, “This is going to be the first ‘welcome to crypto’ day for a lot of new entrants.” “The history of these assets has been littered with aggressive rallies and sickening selloffs.”
Earlier, the cryptocurrency bitcoin had broken a new record after its value crossed $50,000.
Since the beginning of January, its value had increased by more than 90% and its total market value has reached one trillion dollars.
The reason for the recent rise in price is the acceptance of payments in this currency by Tesla and other major companies.
However, bitcoin has seen sharp fluctuations in prices since its introduction in 2009.
Bitcoin had started the year with about &28,900, according to figures from the cryptocurrency news site CoinDesk.
Then in January alone, its value had exceeded 40,000 US dollars. But then at the end of January, it started to decline and at the end of the month, its price dropped to 30 thousand US dollars.
It picked up again and on February 16 it crossed the 50,000 marks and continued to grow at a record high of $58,000.