Bitcoin price: The terrible run isn’t over yet

The cryptocurrency has fallen about 8% in the last 24 hours, according to Coindesk, and traded near $ 33,200 on Tuesday at 4:45 p.m. ET.

Other digital currencies, including Ethereum and Dogecoin, also fell around 8% or more.

The value of Bitcoin tanked over 40% during a spate of bad news in the past month, including a move by a prominent former funder, Tesla (TSLA) CEO Elon Musk, no longer accepting cryptocurrency as a means of payment for cars. There is also increasing government scrutiny over cryptos in China and elsewhere.

It’s not clear what is driving the recent downturn, but there have been a handful of new developments that could unsettle investors.

Musk tweeted a meme that too lament the end of its relationship with cryptocurrencywhich caused the value of Bitcoin to drop on Friday.
And over the weekend, several social media accounts related to cryptocurrency were banned in China – a remarkable one Moving from a country that has had its crypto crackdown in the last few weeks. has expanded Ban on banks and payment companies from the provision of crypto-related services and tightened regulations against crypto mining.
On Tuesday, the daily securities newspaper, a state news organization, praised Beijing’s continued focus on crypto and wrote in an editorial that China has entered an era of “strong oversight” over the industry necessary to protect against financial security risks.

Even former US President Donald Trump recently knocked on Bitcoin and told Fox Business on Monday that the currency “looks like a scam” that “takes the edge off the dollar”.

The Biden administration has also focused on the lack of regulation of the crypto market and recently unveiled new plans to Taxing Bitcoin stronger. The Federal Reserve It seems to be getting more serious about exploring a potential digital dollar.
Experts have indicated that ransomware actors are using cryptocurrency to launder their transactions, and US authorities have labeled the misuse of cryptocurrency in such situations a “massive enabler”. Such issues came back into the spotlight on Monday when the US Department of Justice announced that authorities had Recovered $ 2.3 million in Bitcoin Paid to ransomware hackers who attacked the Colonial Pipeline last month.

The sell-off could worsen if Bitcoin prices drop below $ 30,000. according to Jeffrey Halley, senior market analyst for the Asia-Pacific region at Oanda.

Breaking that barrier would “Basically going long every long position since Jan 1st, which I believe will trigger another surrender trade,” he wrote in a research note on Tuesday.

– Julia Horowitz and Paul R. La Monica contributed to this article.

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