Bitcoin isn¡¯t having the time of its life as its value plummets below $30,000 for the first time in a month. The drop was as much as 4.1 percent and was trading at around $29,700.?
Also Read:?Bitcoin Value Rises Over $60,000: Reasons Behind Insane Spike
This is less than half of the value Bitcoin was, just a few months ago, in April when it crossed $60,000. Many traders held the value of $30,000 as key support that could result in more losses if the barrier was broken. And such declines could result in a domino effect in the crypto market and have the potential to worsen a wider flight from risk assets like stocks.?
Other cryptocurrencies dropped in value too. Dogecoin went down over five percent to $0.16 after its creator, Jackson Palmer called cryptocurrency a scam. Ethereum also went down over 3 percent to $1,755.99 after it hit its peak at $3,900 just two months back. At the time of writing this, the value of Bitcoin rose ever so slightly to $30,809.
Also Read:?China Bans Financial Institutions From Transacting In Bitcoins
Moreover, investors in crypto are getting more cautious each day, not just with the volatility of value but also the politics surrounding it. For instance, China is going all-in to shut down crypto operations across the nation. Reports have shown how miners are dumping used GPUs and other hardware on classified websites.
It's not just China cracking down against bitcoin mining. Even the Malaysian government steamrolled mining rigs after they found miners illegally stealing electricity for their operations, in order to send a strong message.
Even the US is asking for stringent scrutiny of cryptocurrencies on Monday as US Treasury Secretary Janet Yellen asked US financial regulators to quickly act and construct new rules for stablecoins.
Yellen said, "Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system. In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities."