Cryptocurrency concerns saw Bitcoin on Wednesday briefly drop below $ 40,000 for the first time since August in volatile trading. This is the third consecutive day that the virtual currency has fallen.
Rivals including Ether and Litecoin have also collapsed.
“Bitcoin must resume the 200-day moving average at $ 46,000 and consolidate before a collective sigh can be released,” Antoni Trenchev, co-founder of crypto lender Nexo, told Reuters news agency.
The fall is the result of a discussion of cryptocurrencies on Tuesday, where the chairman of the United States Securities and Exchange Commission, Gary Gensler, said that earlier cases of banks and other companies offering private forms of currency had failed.
Gensler reiterated that US securities rules give his agency great authority over digital tokens. He also said there were “gaps” in the oversight of digital tokens that Congress could help fill, such as the regulation of crypto exchanges.
Bitcoin still receives the bulk of entries at $ 15.3 million, data from digital asset manager CoinShares showed on Monday. He also showed that the influxes were observed in all areas.
Digital currency inflows for 2021 still stood at $ 5.96 billion.
There are many cryptocurrencies, blockchain platforms, and exchanges that have grown in importance in recent years. They are: Dogecoin (DOGE), Cardano (ADA), Binance Coin (BNB) and Solana (SOL). After bitcoin, the most popular is Etherium.
According to Mint, Ethereum is not a blockchain, nor a cryptocurrency. It is in fact a protocol (a set of rules or procedures). The original Ethereum split into two blockchains – Ethereum and Ethereum Classic – after the Decentralized Autonomous Organization (DAO) hack of 2016.
Ether (ETH) is the second largest crypto in the world by market capitalization after bitcoin. Ethereum was designed in 2013 by programmer Vitalik Buterin.
The most popular Ethereum tokens are Stablecoins, which reflect the value of fiat currencies like the U.S. dollar, governance tokens, which represent voting power in decentralized organizations, and non-fungible tokens (NFTs) which represent a work of collectible digital art.