The price of Bitcoin (BTC) has now erased all of its gains since the announcement of a cryptocurrency reserve that took place on Sunday.
As reported by U.Today, the flagship cryptocurrency soared above the $94,000 level after it was revealed that BTC would be at the heart of the much-talked-about cryptocurrency reserve.
However, it plunged to $84,000 on Monday before further sliding to the $82,000 level.
Gamza KhanzadaevXRP has also given up virtually all of its gains, plunging to as low as $2.21 on the Binance exchange.
As noted by analytics platform Santiment, many traders are hitting their "breaking points" due to extreme volatility. The recent massive rally ended up being just a flash in the pan.
The rally ended up being very short-lived, with many questioning the viability of such a reserve.
"Overall, there is definitely a notable level of grief, frustration, and flat-out anger across crypto social media," the firm noted. On the plus side, this seems to be a signal that the market is close to reaching the bottom of the correction.
So far, there are very few details regarding the reserve, and the speculative rally was seemingly overextended.
The weakness of the U.S. stock market is also yet another major bearish catalyst for crypto.
Vladislav Sopov
Dan Burgin