In the early hours of Thursday, Bitcoin (BTC) The largest cryptocurrency by market cap, sank to less than four weeks. The crypto asset fell below the price range of $23,000 to $22,408 before climbing back to the current price.
Regulators interfering with the industry?
Bitcoin slumps below the $23,000 range due to ongoing crypto regulation rumors in the industry. On Wednesday, Bloomberg reported that a top US financial regulator is currently investigating the crypto exchange Kraken through suggestions that it violates security rules related to certain offerings for US customers.
Bloomberg further noted citing people familiar with the matter that the investigation is at an advanced stage and could lead to a settlement within days.
Hours later, Coinbase CEO Brian Armstrong voiced through a thread of five tweets, rumors about the SEC wanting to get rid of crypto staking in the US for retail customers. Brian said, “I hope that’s not the case because I’m sure it’s going to be a terrible road for the US if it’s allowed to happen.”
Brian further stated the importance of staking in the industry, “staking is a very important innovation in crypto. It allows users to participate directly in the open crypto network. Staking brings many positive improvements in the space, including scalability, increased security, and a reduced carbon footprint.
Bitcoin (BTC) Slips, Further Dip?
Bitcoin is always susceptible to being influenced by what happens in the industry. Today’s bearish move comes after many investors and traders seem convinced of a bull run that could take them back to the top and beyond.
In January, the price of BTC increased by almost 40% bringing it to the current crossing of the $20,000 mark. After falling below the $23,000 area, Bitcoin has lost several billion from its market cap. Between Wednesday and now, Bitcoin’s market cap has dropped from $442 billion to $432 billion, losing roughly $10 billion in market capitalization.
Overall, when looking at it price chart and basic analysis, Bitcoin should still fall to less than $ 22,300, given the liquidity in that range. If Bitcoin continues its downward move after hitting the $22,300 zone, we could see Bitcoin touch a one-month low of $21,000.
Furthermore, Bitcoin it still remains the largest crypto by market cap with approximately 41.21% of the global crypto market dominance, followed by Ethereum with 18.83% dominance being the second largest cryptocurrency by market cap.
As rumors of crypto regulation intensify, Ethereum has lost 2.41% of its value with a current trading price of $1,633, after almost crossing the $1,700 mark on Wednesday.
Featured images from Shutterstock, Charts from TradingView