Bitcoin plunged more than 10% on Tuesday in Asia to fall below the key $10,000 level as a correction that began last week continued.
Starting on June 11, Bitcoin underwent a two-week rally that saw the coin surge slightly more than $6,000. The potential launch of Facebook’s own cryptocurrency, the Libra, was cited as the catalyst for the buying.
But Bitcoin started dipping after reaching a 2019 high of $13,929.8 last Thursday and has lost more than 25% in less than a week. The reason for the sell-off was unclear, but some say it was due to traders deciding to lock in profits after the popular cryptocurrencies soared through multiple key psychological levels.
A decline of 20% or more from a recent high is the popular definition of a bear market.
Bitcoin today lost 12.1% to $9,942.6. Ethereum plunged 7.8% to $278.31, while XRP fell 5.5% to 0.3930. Litecoin slumped 8.4% to $115.980.
Reports that Russian Deputy Finance Minister Alexei Moiseevsaid the country is not going to develop a separate regulation for Libra received some attention today, although the news had little impact on the markets.
"No one is going to introduce a ban. A large number of businesses ask when it will finally be possible to legally conduct an ICO [initial coin offering] transparently. This will definitely be regulated, permitted, and that is about it," Moiseev said.
In other news, while also not a directional driver, reports that G-20 leaders said cryptocurrencies are not currently a threat to monetary stability made headlines.
The leaders added that technological innovation can deliver significant benefits to the economy.
