Reuters reports that regulatory worries caused cryptocurrency prices to drop on Monday to fresh lows. Risky assets have been avoided by international investors, and rising interest rates are looming. By market capitalization, Bitcoin, the most valuable cryptocurrency, dropped roughly 5% to $18,387, marking a three-month low. Ether, the second-largest cryptocurrency, dropped 3% to a two-month low of $1,285 and lost more than 10% in the previous 24 hours. Even greater reductions are currently occurring for the majority of the other smaller coins.
The value of the token has decreased amid rumors that SEC Chairman Gary Gensler’s comments from last week signal the new structure may draw more regulation. The upgrading also resulted in the closure of trades. The regulatory future is guesswork, according to Matthew Dibb, chief operating officer of Singapore-based cryptocurrency platform Stack Funds. He also asserts that ether prices may increase in the upcoming months as a result of the tensions across the world.
“Fundamentals and technicals, it’s not good right now,” adds Dibb. There isn’t anything immediately positive, and there isn’t much new money or liquidity to sustain these markets.
Bitcoin falls below $20,000 again
After losing $310 from its previous closing, Bitcoin dropped from the $20,000 level on Sunday, sliding 1.54% to $19,804. The biggest and most well-known cryptocurrency in the world has decreased 58.9% from its $48,234 annual high on March 28. The price of one bitcoin once dropped below $20,000 at the end of August this year. The price of ether, a cryptocurrency linked to the Ethereum blockchain network, dropped by $47 on Sunday to settle at $1,422.1, down 3.2% from its previous level.
This year, after a significant market sell-off, Bitcoin suffered. Jerome Powell, the chairman of the Federal Reserve, predicts that interest rates will likely continue to rise. Following Powell’s remarks, the remainder of the cryptocurrency market is also down, with ether, the second-largest digital asset, selling at roughly $1,600, down 6%. According to CoinGecko, the total value of the cryptocurrency market is $1.05 trillion, down 3.8% in the past day.
This year, after a significant market sell-off, Bitcoin suffered. Currently, the asset is 70% below its $69,044.77 all-time high from November 2021.