Topline
The price of bitcoin is approaching nearly 10% on Thursday, leading to a huge loss as bearish calls from regulators and analysts rise after a sharp rise caused by institutional adoption that is still growing.
The world’s largest cryptocurrency is down nearly 10% over the past 24 hours.
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Key facts
As of 12 p.m. EST, bitcoin’s 24-hour fall has pushed prices down to their lowest levels in more than two weeks, wiping out about $ 180 billion in market value from a high ever on January 8, according to crypto data company CoinMarketCap.
Most other high marks are also falling, with ether, XRP and Cardano down 7%, 3.5% and 3%, respectively.
The continuing losses come as bitcoin’s mainstream adoption “builds ties with revolving assets, which could shift cryptocurrencies from insurance to leverage,” JPMorgan analysts said in a statement. note to clients reported by Bloomberg Thursday.
Analysts went on to say that bitcoin is the “most reliable hedge in times of high market stress,” a view that is completely different from Wall Street experts who say investors have tapping into the world’s largest cryptocurrency as a “legitimate hedge against inflation.”
Meanwhile, President Joe Biden’s Treasury Secretary Janet Yellen’s candidate, who may be overseeing crypto-critical bureaus such as the Financial Crimes Enforcement Network and the -Evenues service, known as cryptocurrencies as a “special concern” Tuesday, recommended that lawyers take action to “cut down” their use, “specifically to ensure they are not being used for illegal funding.
That doesn’t stop institutional players from diving further into the space: Investment giant BlackRock filed documents with the Securities and Exchange Commission on Wednesday to take action. into Bitcoin futures with money as appropriate investments for two of its funds.
Quote Cruise
“Bitcoin shows some vulnerability at the end of such a strong month: It saw some pressure at $ 34,000 on Wednesday and has been plunged since then, making a run at $ 30,000 very likely,” said Craig Erlam, Oanda ‘s Chief Market Inspector, on Thursday morning. “This level looks very vulnerable and a break below is soon bad news for bitcoin and cryptocurrencies in general,” he said, before saying that it would not be so surprising if prices fall. drop to $ 20,000 before breaking new highs.
A large number
$ 926 billion. That is the average market value of all cryptocurrencies, according to CoinMarketCap. That’s down nearly $ 200 billion after $ 1.1 trillion earlier in the month, with almost all losses driven by bitcoin.
What do you look
Yellen is not the only Biden nominee with a critical eye on crypto. Gary Gensler, the president’s nominee to be in charge of the SEC, is a former banker who said in 2018 that cryptocurrencies include ether and XRP are similar securities. In December, the SEC accused Ripple Labs (the company behind XRP, the third largest brand in the world at the time) and two of its executives for making unauthorized securities offerings. In its complaint, the SEC states that XRP is a security and therefore subject to the agency’s regulatory scrutiny. XRP prices are down more than 60% since then. At the same time, the SEC director announced in 2018 that ether was not a security, but briefly stopped making that declaration permanent.
Further reading
The abrupt sale of $ 100 billion Bitcoin slows down the price of all major cryptocurrencies – except one (Forbes)
BlackRock files to add Bitcoin futures to the fund (Forbes)
Ether’s market value is hovering at $ 20 billion in one day while Bitcoin prices are slow – Here’s why (Forbes)
Crypto market depreciates $ 200 billion in market value in 24 hours; Regulator warns investors could ‘lose all their money’ (Forbes)