According to Reuters, cryptocurrencies fell to new lows on Monday, due to regulatory concerns. Global investors have been shunning risky assets and global interest rates loom. Bitcoin, the largest cryptocurrency by market capitalization, fell about 5 per cent to $18,387, hitting a three-month low. The second-largest cryptocurrency, ether, fell 3 per cent to a two-month low of $1,285, down more than 10 per cent in the past 24 hours. Most of the other smaller coins are in the midst of even bigger declines.
The token’s value has fallen amid speculation that SEC Chairman Gary Gensler’s remarks last week suggest the new structure could attract additional regulation. Trades surrounding the upgrade were also closed. “It’s speculation about what may or may not happen,” said Matthew Dibb, chief operating officer of Singapore-based crypto platform Stack Funds, of the regulatory outlook. Given the global tensions, he also claims that ether could be more expensive in the coming months.
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Dibb adds “Fundamentals and technicals, it’s not very good right now. There is no immediate bullish factor, there is not a lot of new money and liquidity that will support these markets.”
Bitcoin falls below $20,000 again
On Sunday, Bitcoin fell 1.54% to $19,804 on Sunday, slipping from the $20,000 mark after falling $310 from its previous close. The world’s largest and most famous cryptocurrency has fallen 58.9 per cent from its March 28 yearly high of $48,234. At the end of August this year, Bitcoin once fell below $20,000 per piece. Ether, a token tied to the Ethereum blockchain network, fell 3.2 per cent to $1,422.1 on Sunday, down $47 from its previous close.
Bitcoin took a hit this year after a huge market sell-off. According to Federal Reserve Chairman Jerome Powell, the U.S. central bank is likely to continue raising interest rates. The rest of the crypto market is also in the red following Powell’s comments, with ether, the second-largest digital asset, trading around $1,600, down 6 per cent. The entire crypto market cap is $1.05 trillion, down 3.8% in 24 hours, according to CoinGecko.
Bitcoin took a hit this year after a huge market sell-off. The asset is currently 70% below its November 2021 all-time high of $69,044.77.