Bitcoin (BTC) under $29,000 and Ether (ETH) at $1,000 - What happened last night?

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Cryptocurrency markets have undergone a sharp correction in recent hours. Bitcoin (BTC) and Ether (ETH) in particular have unscrewed to levels they have not reached for several weeks. We're taking stock this morning about what triggered investor fear.

Bitcoin (BTC) falls below $29,000 again

The trend has been downward for the price of Bitcoin (BTC) since the beginning of the week, but its fall accelerated tonight. Yesterday morning, it was still just over $35,000, but it gradually plummeted during the day, before hitting its low limit last night, at $28,850:

Source: TradingView, BTC/USDT

In total, the price of Bitcoin lost -18% in the space of 24 hours. It has since started a rally, and is trading this morning for $31,700. Its capitalization, however, has fallen below $600 billion.

👉 Read: How to buy Bitcoin (BTC)?

The altcoins, including the Ether (ETH), follow the trend

The altcoins accompanied the fall of the largest cryptocurrency, to varying degrees. The fall of the ETH was brutal, as it lost -23% over the same period. But it should still be noted that its good progress in recent days allows it to limit the fall to -3.4% over the week, where the BTC drops by -18%. After touching the $1,000 early this morning, the Aether managed to climb back up above $1,100.

Polkadot (DOT) is the altcoin of the top 10 who fares best over 24 hours, since he loses only -1%. For Bitcoin Cash (BCH), at -11%, it's a different story, and Cardano (ADA) is not doing much better, at -10%. Litecoin (LTC) and Chainlink (LINK) are trying to save the furniture, with -4% and -6% respectively.

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What happened to Bitcoin and the altcoins?

It should be noted that this fall could correspond to two events. On the one hand, the comments of Janet Yellen, the new secretary of the U.S. Treasury,who has issued some criticism against cryptocurrencies, explaining:

"[Cryptocurrencies can be used to finance terrorism and facilitate money laundering. [...] I think we need to figure out how to encourage their use for legitimate activities while reducing their use for illegal activities. »

Second, and perhaps the biggest factor, the fall also occurred as a wind of uncertainty was spreading. A major crypto media outlet has raised the mayonnaise about a possible "double spending" on the Bitcoin network. In fact, as analyst Andreas Antonopoulos explained, what happened is very common on bitcoin's blockchain.

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"All this is normal, a reorganization of 1 block occurs every two to three weeks on average, this is the consequence of the decentralized Proof-of-Work. A two-block reorganization occurs less often, perhaps a few times a year. »

As Bloomberg also explained:

"The blockchain itself has never been corrupted. [...] Confirmation of s transactions via multiple blocks is an asset of Bitcoin, not a bug. »

👉 More on double-spending attacks »

FUD everywhere, quiet nowhere

But the damage was already done, and the classes went unscrewed. Several voices have been raised to comment on this flash correction, and they themselves have propagated a certain FUD. On the JPMorgan side, Bitcoin (BTC) is considered to be seen as a cyclical asset, as it would be "the least reliable bulwark in times of market stress".

All this shows in any case that Bitcoin is subject to panic of investors ... And that they are not always very rational.

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