Bitcoin fell below $30,000 for the first time since June 22, causing other coins to follow suit. According to CoinMarketCap data, the entire cryptocurrency market has lost nearly $100 billion in 24 hours as of Tuesday.
Most virtual coins have been struggling to bull for more than a week due to increased outflow and bearish market momentum. The most popular virtual coin in the world fell 6.6% to $29,671.81 on July 20.
Some other altcoins also follow the same track as BTC. One among the altcoins is the world’s second-largest cryptocurrency, Ethereum. ETH was also under more pressure, falling nearly 9% and trading below $1,800. All other popular altcoins fell between 8% and 14%, indicating widespread collapse in the cryptocurrency market.
According to Annabelle Huang, a partner at Amber Group, a cryptocurrency financial services firm:
“There are concerns about the quality and strength of the economic recovery, and broader risk assets, including high yields, have become weaker.” This, combined with recent BTC (bitcoin) weakness, has only pushed the crypto market lower.”
Regulations on Major exchanges
Major reasons for Bitcoin’s price fall might be the renewed China’s crackdown on cryptocurrency trading and mining. Besides, on July 17, Bitcoin mining had its fourth consecutive difficulty drop since May 29. Bitcoin mining is a high-energy process that facilitates bitcoin transactions and generates new coins.
Significantly, China’s Central Bank has warned its financial sectors not to provide crypto services to customers. Although the strict actions this year from Chinese regulators pulled down the market of Bitcoin and BTC mining.
Additionally, this triggered regulators all over the world to watch keenly on the crypto market. The largest cryptocurrency exchange, Binance, was banned in the UK last month for regulatory purposes and faced criminal charges.
Following that other regulators in Canada, Singapore, and Japan also warned their authorities to follow-up the license to operate in the country. Besides, regulators have issued a warning against Binance. As a matter of fact, there’s been a lot of regulatory focus on the crypto space.
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