December 11, 2023

Markets news | Why did cryptocurrencies plummet in price? 4 reasons

The latest wave of crypto decline began on May 12, when Elon Musk said he would notsell tesla forbitcoins. Since then, Bitcoin has steadily declined and fell 40%. But as you know, bad news doesn't come one by one.

1.On Friday, Chinese authorities said stricter regulation of cryptocurrencies and mining is needed to protect China's financial system. The main motivation is to protect the country from social unrest (CNBC).

2.The US Treasury has expressed concern that crypto is being used for illegal transactions, including tax evasion, and said it would be obliged to report all cryptocurrency transactions over $ 10,000 (CNBC).

3. JPMorgan Bank noted that institutional investors began to sell crypto and move into gold (link)

four.According to some estimates, $ 410 billion was spent on buying bitcoin, of which half fell in the last year. A quarter of this amount, more than $ 100 billion, was bought above $ 36,000, that is, at least a quarter of bitcoin buyers are now in the negative and nervous.