One of the most popular cryptocurrencies by market capitalization has continued a price freewill that has been somewhat characteristic of the entirety of the market in the past few weeks. The currency with the second largest market cap managed to lose as much as 36% of its value in only 24 hours, sinking to as low as $735 per token on Friday morning. The coin was able to recover slightly, shooting back to around $945 only a day or two later. Although market capitalization is not a great way to judge currencies, it is a solid indicator of how much of a given coin is being sold off.
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Neil Wilson, a senior market analyst with ETX Capital, stated recently that “the wheels are coming off the bitcoin bandwagon. The regulatory crunch appears closer than ever and sooner or later this market could be headed back down to earth. Selling pressure at the moment is intense as there has been nothing but bad news for bitcoin bulls of late.” The week began with a series of news that was not in favor of cryptocurrency. This news included a series of regulatory measures that many governments around the world hoped to put in place including South Korea and China.
The Indian government also stated that they “do not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.” Given that the market on cryptocurrency is so new, many governments have been struggling in an attempt to try and put regulation on the industry. The hopes are high that the threat of regulatory measures can begin to slow down on its massive effect on the pricing of many coins in the crypto industry.