Bitcoin price fell below $30,000 late Monday night, sending other digital coins down with it.
According to Coin Metrics, Bitcoin is trading about $29,000, down 3% on the day. Ether is down 1.5% and XRP is down 4%. Despite the drop, bitcoin is up 2.3% year to date, according to CoinDesk. Both Ether and XRP are up over 140% this year.
According to Forbes and later confirmed on Twitter by the company CEO, the New Jersey Attorney General issued a Cease and Desist Order against BlockFi, ordering it to stop selling interest-bearing accounts.
Monday’s sell-off sent the Dow Jones Industrial Average to its lowest level since October, though the markets did not recover some of those losses Tuesday.
“Global markets are down, risk assets are down,” said Annabelle Huang, a partner at bitcoin financial services business Amber Group.
“Wider risk assets, particularly high yields, have become weaker,” Huang said. As a result, the crypto market has fallen further.
During the first 24 hours of Tuesday, the cryptocurrency market lost around $89 billion. Since mid-April, when bitcoin hit about $65,000, its price has fallen over 50%.
In China, Bitcoin trading and mining have banned again.
China’s bitcoin mining zones have compelled to shut down. Miners create new bitcoins and allow transactions using a lot of energy.
The Chinese central bank has warned financial and fintech firms not to offer crypto-related services to customers.
The government of China prohibited local cryptocurrency exchanges in 2017. Chinese dealers continued to buy and sell digital currency. The Chinese regulators’ strong moves this year aimed to further restrict trading and mining.
According to Jehan Chu, founder of cryptocurrency-focused venture capital and trading business Kenetic Capital, “all indications are red due to China’s final crypto ban and worsening macroeconomic conditions from a boom in covid variants.”
Regulators all across the world are paying closer attention to crypto.
Binance, the world’s largest cryptocurrency exchange, was recently banned from all regulated activities in the UK. Regulators have warned Binance in Japan, Canada, and Thailand.
Luno’s head of business development Vijay Ayyar says regulators are increasingly focused on crypto and bitcoin.
Ayyar believes a drop below $30,000 might be significant, with a test of $22,000-$24,000 possible.
Then bitcoin may trade in a range.
“I expect bitcoin to stay between $20-40K ($20,000-$40,000) for a while,” Ayyar said.
Chu of Kinetic Capital sees potential selling.
“Q1′s crypto market momentum has paused and may reverse below $25K levels,” Chu added.