Bitcoin (BTC) falls below $23,000 as rumors of crypto regulation spread
In the morning hours on Thursday, Bitcoin (BTC) the largest cryptocurrency by market cap, fell to a four-week low. The crypto asset fell below its hovering price range of $23,000 to as low as $22,408 before climbing back to its current price.
Regulators bothering the industry?
Bitcoin’s decline below the $23,000 range is due to the ongoing crypto regulation rumors circulating in the industry. On Wednesday, That was reported by Bloomberg that one top US financial regulator is currently investigating crypto exchange Kraken over a suggestion that it violated security rules related to certain offerings to US customers.
Bloomberg further noted, citing a person with knowledge of the matter, that the investigation is at an advanced stage and could result in a settlement in the coming days.
Hours after that, Coinbase CEO Brian Armstrong stated via a five-tweet thread, rumors that the SEC wants to get rid of crypto betting in the US for retail customers. Brian said: “I hope that’s not the case as I think it would be a terrible path for the United States if it were allowed to happen.”
Brian further expressed the importance of staking in the industry, saying, “Staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints. »
Bitcoin (BTC) Tie, More Dip?
Bitcoin has always been vulnerable to being affected by the events in the industry. Its bearish move today comes after many investors and traders seemed convinced of an ongoing bull run that could take it back to the top and beyond.
In January, the BTC price rose almost 40%, leading it to its current crossing of the $20,000 mark. After the decline below the $23,000 region, Bitcoin has lost a couple of billions in market value. Between Wednesday and today, Bitcoin’s market cap has fallen from $442 billion to $432 billion, losing roughly $10 billion in market capitalization.
Overall, while watching price chart and fundamental analysis, Bitcoin should still fall to a low of $22,300, given the liquidity in that area. Should Bitcoin continue a downward move after reaching the $22,300 zone, we could see Bitcoin touch a one-month low of $21,000.
Furthermore, Bitcoin remains steady as the largest cryptocurrency by market capitalization accounting for approximately 41.21% of the global crypto market dominance followed by Ethereum with 18.83% dominance, making it the second largest cryptocurrency by market capitalization.
As rumors of crypto regulation intensify, Ethereum has lost 2.41% of its value with a current trading price of $1,633, after nearly crossing the $1,700 mark on Wednesday.
Featured image from Shutterstock, chart from TradingView
