with Bitcoin (CCC:BIT-USDDown more than 13% in the past 24 hours and below $40,000 apiece, crypto investors are assessing whether the drop is a “natural” correction or a full-blown cryptocurrency massacre after regulators in the US and China lifted their scrutiny.
The second largest Ethereum (CCC:ETH-USD), with Cardano (CCC:ADA-USD) And Dogecoin (CCC:DOGE-USD), weakened by 20%. XRP (CCC:XRP-USD) down 14.9% from the seven-day high of $1.7022 yesterday.
Several banking and financial regulators in China have told the country’s financial institutions and payment transfer operators to stop participating in any cryptocurrency-related transactions. The ban also applies to cryptocurrency-related services offered to clients.
“Cryptocurrency prices have skyrocketed and fallen recently, and speculative trading is back on the rise. This seriously harms people’s property safety and disrupts normal economic and financial orders,” said a statement issued by the regulators overseen by the People’s Bank of China, the Insurance Commission and Banks of China.
Washington sets its sights on cryptocurrency review
While this is happening in Beijing, regulators in Washington are set to review all pending Office of the Comptroller of the Currency (OCC) issues in the United States, explanatory letters and guidance, including issues related to digital assets and cryptocurrencies. The move comes after the cryptocurrency received a warm reception under former Acting Comptroller Brian Brooks.
But now there is a new mayor in town. Michael Hsu, the new Acting Comptroller, said his predecessor’s initiatives “were not implemented in full coordination with all stakeholders. They do not appear to have been part of a broader strategy related to the regulatory landscape. I believe that addressing these two tasks should be a priority.”
The comments were made before Hsu appeared later today before the House Financial Services Committee at a hearing scheduled to include all of Washington’s federal bank regulators.
Those considering whether the drops are ‘natural’ can rate the comments of Vijay Ayar, Head of Business Development at Cryptomart. the moonwho said CNBC That 30% to 40% retracement is standard during a Bitcoin bull market. “So that’s very predictable now that we’re past the $64,000 ($64,000) figure.”
The cryptocurrency massacre comes as investors are already reeling after the May 12 move Tesla (NASDAQ:TSLA) to suspend the purchase of electric cars using Bitcoin. Once seemingly a huge fan of Bitcoin, CEO Elon Musk He has been silent about cryptocurrencies since May 13, when he tweeted“To be clear, I strongly believe in cryptocurrencies, but it cannot lead to a massive increase in the use of fossil fuels, especially coal,” to over 55 million followers.
At the date of publication, Robert Lakin did not (directly or indirectly) have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including past assignments with Bloomberg News and as buy-side equity research editor.