Concerns around cryptocurrency caused Bitcoin to drop briefly below $40,000 today for the first time since August in a week of highly volatile trading. This is the third day in a row where Bitcoin has seen a significant price drop, and other rival cryptos like Ether and Litecoin also dropped.
Antoni Trenchev, the co-founder of cryptocurrency lender Nexo, told Reuters that Bitcoin needs to regain the 200-day average of $46,000 and consolidate its position before any sigh of relief can be achieved.
The fall comes after a discussion on cryptocurrencies on Tuesday. Gary Gensler, the US Securities and Exchange Commission Chairman, claimed that previous instances of banks and other financial institutions offering private forms of money had failed.
Gensler insisted that US Securities laws give his agency a huge authority over digital tokens. He also pointed out “gaps” in regulating digital tokens that Congress could help close, including regulating cryptocurrency exchanges.
However, Bitcoin is still receiving the bulk of inflows at $15.3 million, as data from CoinShares, a digital asset manager, indicated on Monday. It also showed that the inflows were experienced across the board. 2021 digital currency inflows were still a solid $5.96 billion.
There are numerous cryptos, blockchains and exchange platforms that have gained popularity in recent years, including Binance Coin (BNB), Dogecoin (DOGE), Cardano (ADA) and Solana (SOL). After Bitcoin, the most popular cryptocurrency remains to be Ethereum.
According to Mint, Ethereum is neither a blockchain nor a cryptocurrency. It is a protocol or a set of rules and procedures. The novel Ethereum is divided into 2 blockchains; Ethereum and Ethereum Classic. This was after the 2016 Decentralised Autonomous Organization (DAO) hack.
Ethereum (ETH) is the world’s number two cryptocurrency by market capitalisation after the leader Bitcoin. Programmer Vitalik Buterin developed Ethereum in 2013.
Popular Ethereum tokens are known as Stablecoins, which reflect the value of fiat currencies like US dollars, governance tokens. These represent voting power in decentralised organizations and non-fungible tokens (NFTs), representing a collectible piece of digital art.