3 Reasons Why Bitcoin Price Crashed by More Than $11,000

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Bitcoin suffered a major price crash during the weekend and on Monday after securing a milestone high of $41,986. The flagship cryptocurrency shed more than $11,000, or roughly 29 percent, in just three days of trading to hit a session low just shy of $30,000. Its plunge also trimmed roughly $205 billion off its market capitalization, confirming its worst performance since March. Bitcoin’s sudden decline shocked traders who anticipated its bull run to head higher against favorable macroeconomic conditions (). Meanwhile, many analysts agreed that the cryptocurrency was due for a downside correction after surging relentlessly in the last nine months—logging more than 900 percent in gains from its mid-March nadir of $3,858. Nevertheless, more catalysts were at play during the Bitcoin price crash. Here are three primary factors responsible for its latest decline. #1 Stimulus Hopes (A Short-term Shock) Stimulus packages raise the prospects of a decline in the…

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