Why cryptocurrency market is down today?

 

The entire cryptocurrency market is collapsing; major currencies such as Bitcoin, Ethereum, Solana, Cardano are in sharp decline today and it is common to wonder what is going on.

At the time of writing, Bitcoin is down 8%, while Ethereum, Cardano, and Solana are recording declines of more than 9%.

The motivation for this new cryptocurrency market crash is not easy to find. Partly due to profit-taking, albeit large, but many fear that the real problem is regulation.

Up to now, cryptocurrencies have lived in a sort of far west of laws and regulations and this has allowed them to grow enormously. The cryptocurrency investor has no guarantees and does not benefit from any protection. But today things are changing; President Biden presented a first embryonic draft of cryptocurrency regulation. It is really a minimum of obligations on the part of those who work there and the intermediaries, but this was probably enough to change the sentiment of the cryptocurrency world.

After a year of gains and record highs, cryptocurrencies are experiencing a turbulent time with unpredictable price changes. But those who know the cryptocurrency market by now have accustomed us to truly tremendous ups and downs.

Investors have been through it several times before, ups and downs that alternate very quickly; the collapse due to the ban on digital currencies in China, but then followed by a rally due to the SEC's decision to approve the first Bitcoin ETF. Then there are central banks that warn investors of risks, but then Goldman Sachs says that Bitcoin is a better refuge than gold. In short, in cryptocurrencies, there are many admirers and many detractors. Certainly, it is a new reality that attracts a little for its earnings and a little frightening for its extreme volatility.

For a few weeks now, blockchain-based coins have been showing considerable weakness. Bitcoin, after hitting an all-time high of $ 69,000 on November 10, has seen its prices fall progressively to overcome a decline of 20%. Other cryptocurrencies have done worse, the Shiba Inu meme coin is sinking by as much as 70%, so much so that there were uncontrolled rumors about crypto on the internet. In short, a general weakness that is a bit of a mystery.

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