After many cryptocurrencies had seen a negative price development for a few weeks, a dramatic collapse has recently taken place. Thus, Bitcoin price fell below the important mark of $30,000 per coin, while smaller cryptocurrencies like Ethereum, Cardano, NBB (Binance), XRP (Ripple), and Dogecoin lost $200 billion in value in the last week.
Among the top ten cryptocurrencies by value, Ethereum competitors BNB and Cardano gained leading positions with sales of more than 10%, while Ethereum itself was around 8% lower. Ripple’s XRP, currently in the midst of a lawsuit with the U.S. SEC, also lost about 10% in value, while Elon Musk’s favorite project Dogecoin lost 7% in value. The Bitcoin price has dropped a full 10% in the past few weeks.
A Worldwide Wave of Crypto Sales
After Bitcoin repeatedly approached the $30,000 mark in recent weeks, an injunction order for the financial service provider BlockFi now seems to have another strong negative effect. A corresponding order was issued by the state of New Jersey last night, which in turn disturbed investors. The news immediately caused a wave of sales as investors feared losing their assets due to the possible closure of crypto lending platforms.
The regulatory moves began with China’s recent crackdown on crypto mining in April. Since then, the major crypto exchange Binance has seen increasing pressure from regulators around the world that has clearly had a negative impact on the price of various cryptocurrencies.
In addition, a few days ago, US Treasury Secretary Janet Yellen met with various US government agencies to hold initial discussions on the regulation of stablecoins (Tether, USDC, DAI, etc.). The market cap of these cryptocurrencies has increased to a total value of over $100 billion in the last twelve months.
Ultimately, it remains to be seen how the US authorities will react to cryptocurrencies and what further changes are inevitable in the next few weeks and months. It’s amazing that the current negative wave could be a sign of an inevitable increase in Bitcoin value.