Causes of Bitcoin, Ethereum and Dogecoin Collapse!

  Causes of Bitcoin, Ethereum and Dogecoin Collapse! The Cryptocurrency Market Had a Relentless Drop on Tuesday as Regulators Pressured the Industry. Cryptocurrency Market Is Falling! Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH) and Dogecoin (CRYPTO:DOGE) dropped 7%, 9% and 20% respectively as of 11:00 am, followed by many other crypto assets.

What happened?

After China imposed restrictions on cryptocurrency miners last week, investors have been pretty nervous. It has been reported that the Chinese government is concerned about the increased energy use in the bitcoin mining industry due to changing climate conditions. According to the Chinese newspaper Global Times, the restriction will result in a more than 90 percent reduction in Bitcoin mining capacity in the country. The government has also begun to restrict the tendency of its financial institutions to work with crypto-focused companies. The digital payments giant has ordered Alipay and some of China's biggest banks to shut down crypto-related services.

The Cryptocurrency Market Had a Relentless Drop on Tuesday as Regulators Pressured the Industry.

So what will happen?

In fact, these decisions taken by China coincide with the decisions taken by the regulators in the west. Gary Gensler, chairman of the Securities and Exchange Commission (SEC), wants Congress to allow financial watchdogs to directly oversee cryptocurrency exchanges. There are also growing concerns that Tether (CRYPTO:USDT), a stablecoin with a market cap of more than $62 billion, may soon be subject to high regulatory scrutiny. According to some analysts, around 70 % of cryptocurrency trading volume is in Tether. These statements are important and compelling reasons for investors to sell cryptocurrencies such as Bitcoin, Ethereum and Dogecoin.  

Source: The Motley Fool

 

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