TL;DR Breakdown
• Cryptocurrencies have lost 50% in popularity since April.
• Cryptocurrency prices are affected by IRS regulations and announcements from China.
Cryptocurrency prices have plunged in every sense early this Tuesday while a regulatory environment is present. Investor interest has waned, and comments from people of high cadre like Donald Trump helped make this loss a substantial one. These anti-crypto online comments caused the market to experience a $200 million selloff.
Bitcoin lost 8.4% of its value in less than 24 hours, according to Coingecko figures. Last Monday, the cryptocurrency price had dropped below $30000.
The cryptocurrency price plunge also affected Ethereum, which lost over 9% of its value. The cryptocurrency traded at $2515 while Dogecoin had a 13% loss reaching $0.325888 in value.
Cryptocurrency prices started the month down
From the onset of June, cryptocurrency prices have plummeted largely due to the regulations to come. The crypto environment has turned for the worse, with some overly pessimistic investors even claiming they expect it to collapse.
At least 9 out of 10 top-cap cryptocurrencies lost value on Tuesday morning. Global market capitalization lost 10% following the decline in cryptocurrency prices.
BNB, the Binance token, lost 11.9% of its value while XRP that belongs to the American company Ripple Labs lost 10.5% of its value.
Cryptocurrencies such as DOT from multi-chain company Polkadot have experienced the biggest drop in value in less than one day. DOT has lost 13.4% of its capitalization, which brought huge losses to its investors. According to analyst Thomas Westwater, this cryptocurrency selloff could leave Bitcoin moving closer to a value of $30,000.
Cryptocurrencies may continue to decline with the selloff, according to experts
In theory, cryptocurrency prices are in a very weak position. They have had constant declining averages, according to experts. The 20-50 and 200-day moving averages have rampaged to a bearish death. This crypto dilemma has no end in sight for now, because the selloff has not stopped yet.
This massive cryptocurrency sale occurred due to the regulations in the market. Initially, the president of the United States, Joe Biden, tried to discuss cryptocurrencies and Ransomware. However, Bank of China regulations against the free commercialization of cryptocurrencies among its companies.
Weibo, a Chinese social network, also joined the cause against the market and removed the accounts of crypto influencers. The digital business has also been affected by the IRS news, asking to justify high crypto transactions. According to Glassnode figures, cryptocurrency trading has lost 50% interest since April.
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