Cryptocurrency prices have plunged as the US government steps up its efforts to regulate the emerging sector. Bitcoin, which had scaled new heights above $22,000 earlier this week, slid back to about $19,800, according to Bloomberg. The downturn was also felt by other cryptocurrencies, some of which fell between 5% and 30%. LinkedIn reports that in the past 12 hours, $286m has been liquidated. CoinMarketCap states that ether, the second largest cryptocurrency by market capitalisation, fell to $610 from a record high above $1,400.
Things Are Getting Insane in Crypto: Is it Time to Buy or Sell?
The crypto industry is experiencing a lot of fear and instability right now. Bitcoin fell below the psychological level of 20,000 USD and many altcoins are down by as much as 30%. The current market volatility is causing many to panic and wonder if they should sell their assets or hold out and wait for a rebound. The selling pressure is coming from a variety of sources, including the coordinated effort by the US government to stifle crypto.
Liquidations are a major factor contributing to today’s market decline. Within the last 12 hours alone, there have been 286 million dollars liquidated. Additionally, there are other factors at play such as Voyager’s ongoing sale of assets and the selling off of assets by the Binance US deal leading to further liquidations.
Other developments contributing to the instability include Huobi, one of the largest crypto exchanges, experiencing a price drop from 4.74 cents to a dollar and ninety cents within a few minutes. The fully diluted market cap of UOB token is about two billion dollars, and Justin’s son is seeking assurances from nervous users. The New York attorney general’s office is suing Kucoin, declaring Ethereum a security, and the SEC recently ordered Paxis shut down.
Compounding the uncertain market climate, Biden is proposing a 30% tax on electricity used for Bitcoin mining, Hindering the transition to low emission energy in the sector. There is also a bank run happening wherein Silicon Valley Bank is down 60% during the day’s trading and still down 15% to 20% after hours, wiping out over 80 billion dollars in value of the bank shares.
It’s important to stay objective in these times of panic and to keep in mind that the market always experiences cycles of highs and lows. Whether it’s time to buy, sell, or hold depends on one’s preference for risk and ability to endure volatility. Current events may seem alarming, but it’s worth keeping in mind that the crypto industry will continue to evolve.
In conclusion, it’s essential to stay careful and informed about the latest developments in the market to make sound decisions. It’s uncertain whether the market will rebound or continue to decline, but one thing is for sure- the crypto industry will never be boring.