Cryptocurrency decline continues
Continuing concerns over the global regulatory response to the growth of the cryptocurrency sector drove prices lower again on Wednesday, with bitcoin briefly dipping close to the $6,000 level.
The newsflow was not supportive, as US congressional hearings warned of the use of crypto assets in making illegal election campaign payments, while Canada and the US state of Florida announced new regulatory measures.
Research from Finder.com suggested that more than 80% of the some 1,500 cryptocurrencies in existence had fallen in price over the last seven days – on average, by 19%. Bitcoin is down 8.5% in the last seven days.
Bitcoin nears $6,000
On Wednesday, bitcoin fell 2.3% to $6,094, having fallen as low as $6,036.80. On Sunday, the currency fell below the $6,000 support level for the first time since February, and fell as low as $5,785.30 – its lowest level since November 2017 when it was on its way up to a record close to $20,000.
Finder.com also noted that trading volumes fell in the last week, exacerbating the negative price moves.
Still, many crypto traders remained positive on trading chat sites.
One user on Investing.com said: “In spite of negative perceptions: exchange hacks, governments’ attempts to regulate and more, it’s not going anywhere and likely at the bottom.”
Another was not quite so optimistic, answering in response: “I can understand that – the faith goes on. I’m on pause since $8,500 waiting to see some evidence of a bottom.”
Here’s the daily action and the fall over the last seven days (in brackets) of the rest of the top 10 cryptos by market capitalisation:
- Ethereum is down 2.6% to $435.25 (17.2%)
- Ripple is down 3.5% to $40.46 (13.5%)
- Bitcoin cash is down 4.8% at $706.40 (20%)
- Eos is 4.3% lower at $7.61 (26.4%)
- Litecoin is down 3.7% at $77.92 (19.8%)
- Stellar lumens is 5.5% lower at $0.18 (20.2%)
- Cardano falls 5.9% to $0.13 (21%)
- Tether is down 0.3% at $1 (0.07%)
- Iota is 1.4% lower at $0.96 (15.9%)