Cryptocurrencies fell sharply in Monday’s trade, following a brief rally in the past four days. Excluding Stellar (XLM) and EOS (EOS), the majority of top ten cryptocurrencies posted a high mid-single-digit decline in today’s market, impacted by traders concerns over the increasing regulatory actions.
Bitcoin (available on Coinbase) (BTC) lost more than 7% of its price today and continues to trade below the $11,000 mark. The digital currency has hit $13,000 mark on Sunday. Its market capitalization is currently standing below $180 billion, down significantly from the highest level of $327 billion, on December 19th.
Source: CoinMarketCap
Ethereum (available on Coinbase) (ETH), Ripple (available on Binance) (XRP), and Bitcoin (available on Coinbase) Cash (BCH) all are following the downward trend.
Ethereum (available on Coinbase) declined above 6% in Monday trade, while Ripple (available on Binance) plunged almost 10%.
Bitcoin (available on Coinbase) Cash was among the worst performers today. At the time of writing, Bitcoin (available on Coinbase) Cash is trading around $1,560, down almost 11.64% in 24 hours.
Once again, the selloff is blamed on regulatory actions from several important countries. Today, India has suspended all cryptocurrency trading accounts, while South Korea has presented new tax laws for virtual currency exchanges.
Although some analysts see the dip in prices as a buying opportunity, several other are sending warnings signals to their clients.
The CEO of BitBull Capital said: “With the massive dip we saw last week, it’s likely that investors who were shaken by the volatility – but smart enough not to sell at the bottom – are simply taking their profits while they can, or pulling out while they’re breaking even.”
Governments all around the world are concerned with the fast movement of cash with the help of digital currencies.
Following Germany and France’s announcement of taking strict actions against cryptocurrency trading, the European Union also announced their intention to increase examination of digital currencies, amid fears that these currencies are used for criminal purposes.
Luxembourg Finance Minister Pierre Gramegna said, “The dangers of money-laundering via the use of cryptocurrencies are clear and that Europe will have to handle it as one, hinting at European level action.”
Along with issuing a sTron (available on Binance)g warning for cryptocurrency traders, International Monetary Fund has highlighted the need of taking a collective decision on regulating cryptocurrencies.
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