Bitcoin’s tough times continued as the world’s largest cryptocurrency fell by more than 7 percent in the last 24 hours. The price crash came amidst cloudy regulatory decisions, and a backlash against Facebook’s Libra coupled with a combined attack on the cryptocurrency industry.
The price crash was so significant that records showed it as Bitcoin’s lowest price hold since June of this year. At press time, Bitcoin was trading for $7475 with a total market cap of $134.63 billion. The cryptocurrency held a lowered market volume of $22.17 billion, a phenomenon that also saw other cryptocurrencies dip in volume too. A majority of Bitcoin’s trades were conducted on BitFreox while BKEX was next in line. While BitForex controlled 3.76 percent of the total BTC trade, BKEX was in charge of the 3.55 percent.
Bitcoin’s price crash was so significant that other altcoins such as Ethereum, XRP, and Litecoin fell by 4 percent, 5.71 percent, and 6.75 percent, respectively.
“The biggest thing behind this is that volumes have been very very low,” said Josh Lim (to Bloomberg), head of trading strategy at Galaxy Digital in New York. “On the sentiment side of things, the fact that the Libra coalition has faced some major challenges and the Telegram launch was halted by the SEC, it really curtailed investor appetite for crypto broadly.”
Many other significant players in the cryptocurrency industry also voiced their reasons and concerns related to Bitcoin’s fall with Jeff Dorman, the Chief Investment Officer of asset manager Arca, stating that what drove the sale of many different cryptocurrencies is the “increased regulatory scrutiny.”
Marouane Garcon, the managing director of crypto-to-crypto derivatives platform Amulet also claimed:
“I would definitely say that market uncertainty is due to unfavorable regulatory conversation. I think there’s more negative news than positive surrounding cryptocurrencies right now.”
There have been several other speculations on why the prices have dipped with theories connected to the low trading volumes across spot exchanges and the world’s capital moving to something more stable in a time of uncertainty.
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