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Cryptocurrency Crash | Why Prices Are Crashing & What Happens Next

Cryptocurrency Crash

Cryptocurrency mania seems to be ending. Bulls continue to lose their hold and bears are looking on top of crypto markets. Several analysts and global central banks have also bashed cryptocurrencies during the World Economic Forum by raising questions on the underlying value of bitcoin (BTC) and other cryptocurrencies. The illegal transfer of money through cryptocurrencies has raised the Central Bank’s concerns.

On the other hand, Goldman Sachs (NYSE:GS) and UBS advised investors to stay away from the bitcoin bubble to avoid the potential losses. Consequently, cryptocurrencies moved sideways in the last two weeks.

However, troubles for bitcoin and other cryptocurrencies seem to be increasing since the start of this week. After declining slightly on Monday, Bitcoin and other top-rated currencies crashed today. It was primarily impacted by traders concerns over Tether, Coincheck theft and the ban on the anonymous cryptocurrency accounts in South Korea.

Source Image: coinmarketcap

Bitcoin’s price plunged again below the $10,000 mark today, amid reports of cryptocurrency exchanges Bitfinex and Tether being subpoenaed by US regulators in December. Traders concerns over the foul practices increased after Tether announced that it cut off the relationship with its auditors.

Source Image: coinmarketcap

Cryptocurrencies wiped off $70 billion from market capitalization at the top of Tuesday’s selloff. Following the sell-off, Stellar (XLM) lost its sixth place, currently standing at the eighth place based on market cap. Stellar declined 15% to $0.49 at the time of writing.

U.S. Treasury Secretary Steven Mnuchin raised traders concerns for the potential crackdown on cryptocurrencies in the United States. Addressing to the Senate Banking, Housing and Urban Affairs Committee, Steven Mnuchin said, “The Treasury wants to make sure cryptocurrencies are not used by money launderers.”

The market was also hit by the ban on anonymous cryptocurrency accounts, as South Korean new regulation takes effect from Today. Moreover, several banks and exchanges in South Korea are experiencing troubles in executing new policies, halting the trading process in Tuesday’s trading. Overall, analyst’s bearish bets are increasing, amid several regulatory and fundamental threats to cryptocurrencies.

Featured Image: Depositphotos/© egal

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About the author

Alma W. Hendon

Alma W. Hendon got into Bitcoin while completing his Master's degree and hasn't looked back since, writing about anything crypto-related which makes him sit up and pay attention.

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