Cryptocurrencies Witness a Downward Trend, Wiping Off $200 Million in a Day

Cryptocurrencies Witness a Downward Trend
Introduction

Bitcoin, ether, dogecoin, and several other cryptocurrencies fell significantly on Tuesday and it leads to an increase in the issue of regulatory.

The all-out sell-off wiped out $200 billion from the crypto industry in a single day. The market’s decline reflects rapidly declining investor interest in digital currency and comes in the wake of celebrities’ online condemnation, from former U.S President Donald Trump.

On Tuesday morning, nine among the biggest ten cryptocurrencies by market capitalization were at the lowest, except for the USD Coin, a stable coin referring to the U.S. dollar. In the meantime, 10% of the international crypto market cap has been lost.

Status of different cryptocurrencies in the market

Cryptocurrencies Witness a Downward Trend

source: dialabank.com

As per Coingecko data, the world’s largest digital currency, bitcoin was down 8.4 percent in the 24 hours to 3:34 a.m. E.T. and was trading at $33,041.47, after falling below the $30,000 label late Monday. Thomas Westwater, a strategist for DailyFX.com, stated that this declining trend will proceed and push bitcoin underneath the $30,000 milestone.

“Bitcoin is technologically in a position of weakness, having fallen underneath its 20-, 50-, and 200-day Averages. Moreover, the 50-day Simple moving average may soon cross underneath the 200-day SMA, completing a bearish death cross and possibly dragging prices lower.

In the same time period, ether fell 9.3 percent and was the last trading at $2.515.27. Simultaneously, Dogecoin suffered a 13% loss, bringing its cost lower to $0.325888.

Binance’s BNB coin was down 11.9 percent last week, while XRP was down 10.5 percent. Polka dot suffered the major 24-hour loss among the top ten digital currencies, trading 13.4 percent lower than on Monday.

What leaders have to say about this?

Cryptocurrencies Witness a Downward Trend

source: cnn.com

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Problems about an international crackdown on cryptocurrencies by regulators have grown. At this weekend’s G7 summit, U.S. President Joe Biden intends to talk about the utilization of digital currencies in ransomware extortion. 

Even though China is widely regarded as leading the charge in terms of considering a crackdown, Weibo, a Chinese leading social media platform, deleted the accounts of crypto bloggers on Monday, citing that they had disrupted the guidelines. 

At the very same moment, celebrities have been vocal in their criticism of bitcoin. For example, former U.S. President Trump told Fox Business on Monday that the leading cryptocurrency is a “fraud against the dollar” and that it needs to be controlled more strictly.

Privacy of digital currency

Cryptocurrencies Witness a Downward Trend

source: dialabank.com

The industry was also unable to chew the news that U.S. federal agents captured 2.3 million dollars of the total 4.4 million dollar crypto bribe paid to imperialist Pipeline attackers in exchange for access to a bitcoin wallet login credentials. The seizure shows that officials can monitor and access cryptocurrency wallets, implying that they are not more confidential and personal than many speculators thought of.

There are indications that investor zeal in the cryptocurrency market is waning. According to Glassnode information, the various available bitcoin addresses – that is, the amount of people willing to invest in the cryptocurrency – has decreased sharply by half since their highest point in mid of April.

Conclusion

Cryptocurrencies Witness a Downward Trend

source: amazon.com

It’s over a month now that digital currencies are constantly declining and witnessing a bearish trend. But because of reasons like criticism from famous personalities like Donald Trump, Elon Musk, and others, followed by various privacy concerns, risky and huge investment investors are unwilling to make a move. 

A few weeks before, the World Bank Chief Economist stated that Bitcoin And Crypto Here To Stay But Won’t Be Used In Most Payments. Elon Musk also stated that they wouldn’t be accepting bitcoin as a payment method further, which also tumbles its growth. 

So, what’s your take on this? Do you consider digital currencies as a workable investment option? Do let us know in the comments section below at Live Enhanced

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