News coming from China and the US Federal Reserve weighed on the world’s biggest cryptocurrency by market cap.
Bitcoin (BTC) and the rest of the cryptocurrencies, at least most of the top ten coins by market capitalization, suffered substantial losses across the board on Tuesday. BTC plummeted over 9% to reach a low at around $31,013.86 and now is settling its price at $33,490 as of press time. Ethereum (ETH) also followed the bearish path by plunging towards the $2,306 level. However, now it’s losing -2.95% and exchanges hands at $2,516.
Altcoins such as Binance Coin (BNB) and Cardano (ADA) had some declines over the day, now hovering at $351.55 and $1.57, respectively, according to Coinmarketcap data. Overall, Bitcoin prices’ fall to their lowest point in ten days can be attributed to a strain of news from the US and China fronts. First, Weibo accounts from opinion leaders in the crypto sphere had been blocked, as the Chinese crackdown on virtual currency trading and mining keeps strengthening.
However, accounts not involved in the advertising of exchanges have not been blocked as of press time, but such maneuver triggered part of the sell-off that Bitcoin has seen in the last 24 hours. “This time is much more widely cleansing it seems like, many industry players like wallets, individual influencers, media outlets, top traders and even meme accts are all shut,” Dovey Wan, founding partner of crypto-asset holding company Primitive Ventures, commented.
Eyes on the Federal Reserve
Furthermore, investors globally have been paying closer attention to the latest moves from the US Federal Reserve, which could start to deploy its quantitative easing program, aiming to boost liquidity.
But another headline could have been fueled the strength of the bears across the markets, which came from the former US President, Donald Trump. “Bitcoin, it just seems like a scam. I don’t like it because it’s another currency competing against the dollar,” Trump said during an interview with Fox Business.