As many as five of the top 10 digital coins were trading lower at 8.30 AM ET, while the same number of coins were trading higher. Bitcoin was trading in the red, while Terra was up 6 percent.
The global cryptocurrency market cap was flat at $1.97 trillion compared to the previous day. The total size of the crypto market fell by about 23 percent to $71.19 billion.
Bitcoin extended its slide over the weekend as most speculative assets continued to weigh heavily. The largest cryptocurrency by market capitalization approached $40,000 for the first time since late September, bringing its losses since its peak just three months ago to around 42 percent.
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Cryptocurrency companies have made many proposals to regulate cryptocurrency, from making exchanges accountable for any money laundering or other regulatory concerns to distinguishing between different exchanges based on their net worth and technology.
Some of the most popular cryptocurrency exchanges are beginning to notice what could be a worrying sign — individual investors are heeding the industry mantra of “hold” and shying away from trading as the collapse in digital asset prices worsens.
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After the Chinese ban on bitcoin mining in early 2021, the market took a huge hit and some miners migrated to other countries such as Kazakhstan due to favorable factors such as abundant energy, WazirX Trade Bureau said.
“Due to protests in Kazakhstan, the government shut down the internet in the state, which hit bitcoin miners hard and the hash rate fell by 13.4 percent, which is one of the factors responsible for the recent bitcoin decline,” she added.
This event introduced miners to political risks and they are now looking to countries that enjoy political stability. The miners have moved to Kazakhstan with old equipment and plan to move to other locations once the equipment becomes obsolete.
For true believers in cryptocurrency, Bitcoin is the ultimate store of value, the most powerful hedge against rampant inflation made by central banks and money printing.
For skeptics, the crypto world as a whole is a mirage whose massive surplus of more than $2 trillion was just a speculative byproduct of the extraordinary amount of easy cash that was flowing into the global economy – a big bubble.
Kosovo, a European country, has seized hundreds of cryptocurrency miners and arrested one of the tense ethnic Serb majority in the north as the country suffered an energy crisis. Cryptocurrencies like Bitcoin are created by solving complex equations that consume huge amounts of energy.
Pakistan’s FBI says it has issued a notice to popular cryptocurrency exchange Binance while investigating a multi-million dollar scam linked to fraudulent online investment mobile apps
“We saw record sales in NFTs last week, and we can see a continuation of the bullish run over the next couple of weeks,” said Hitesh Malviya. “Retail money is flowing into the NFTs as the cryptocurrency is currently facing a downtrend.” Itsblockchain founder.
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This week saw further weakness in all major cryptocurrencies, including Bitcoin, and this selloff was in fact a continuation of the early December weakness.
Prices are now trading below the December low, and in fact, most major momentum and trend-tracking indicators are not expecting any reversal to the downside just yet. The $45,000 level will continue to act as an important supply area (resistance) where Bitcoin can be sold on the upside.
(The opinions and recommendations in this section are those of the analysts and do not represent the opinions and recommendations of ETMarkets.com. Please consult your financial advisor before assuming any position on the said asset/s.)