Bitcoin Slumps To Four-Week Low, Is Crypto Regulation To Blame?
• Bitcoin (BTC) fell to a four-week low in the early hours of Thursday, slipping below its hovering $23,000 price range to as low as $22,408.
• The crypto asset’s slump is due to ongoing regulations rumors circulating in the industry such as the investigation into Kraken and the suggestion that SEC wants to get rid of crypto staking for retail customers.
• Coinbase CEO Brian Armstrong voiced out his concerns about the possible regulation outcomes saying it would be “a terrible path for the U.S.” if they were allowed to happen.
Bitcoin (BTC) Slips Below $23K
In the early hours of Thursday, Bitcoin (BTC), the largest cryptocurrency by market cap, sank to a four-week low. The crypto asset slipped below its hovering $23,000 price range to as low as $22,408 before climbing back up again.
Regulators Pestering The Industry?
Bitcoin’s slump below its $23,000 range is due to ongoing crypto regulations rumors circulating in the industry. On Wednesday, Bloomberg reported that a top U.S. financial regulator is currently investigating crypto exchange Kraken over a suggestion that it breaking security rules related to certain offerings to U.S. customers and could result in a settlement within days. Hours after that news broke out Coinbase CEO Brian Armstrong voiced out via a five-tweet thread rumors concerning the SEC wanting to get rid of crypto staking in the U.S., expressing his concerns about this outcome saying it would be “a terrible path for the U.S” if they were allowed to happen and underlining staking importance in improving scalability, security and reducing carbon footprints in blockchain networks.
Bitcoin (BTC) Slumps Further?
The recent bearish movement comes after investors had been convinced of an ongoing bull run that could take Bitcoin back up towards its peak and beyond; BTC had surged nearly 40% since January bringing it above its previous crossing of the $20k mark earlier this year . Following its slump below the $23k region, Bitcoin has lost around two billion from its market cap falling from $442 billion on Wednesday down totoday’s$432 billion mark .
Despite being vulnerableto external factors affectingthe industry there are still some positive outlooks for Bitcoin: BitStarz recently announced record winnings with one lucky player landing 2 million dollars worth of BTC; exchanges have seen increased volume which could indicate more investments coming into play; and finally institutional investors remain bullish on BTC further pushing prices towards higher highs throughout 2021 despite any potential dip along its journey..
Despite today’s bearish move it looks like cryptocurrency markets remain optimistic on Bitcoin heading forward – something that will only be confirmed when we look back at 2021 at year end!