bitcoin, fell to $56,000, hitting a one-month low on Friday. leading cryptocurrencies, Ethereum (ETH) pulled down the rest of the market, including Most of the top altcoins have lost between 3 percent and 10 percent. Total market capitalization fell from $3 trillion to $2.6 trillion.
BTC is currently under pressure from political developments from the east and west. The adoption of the infrastructure bill in the US has raised some issues for crypto service providers.
Cardano founder Charles Hoskinson recently blamed poor performance on the law;
“We are in a bit of a bad situation today because the Infrastructure Law was passed. Left to its own devices by 2023 when these powers take effect…depending on how it is interpreted and what the IRS does with it, it could cause catastrophic damage.”
Brief Regulatory Update https://t.co/mp3MTJltCY
— Charles Hoskinson (@IOHK_Charles) November 16, 2021
Besides, in China, the government continues to restrict crypto-related business. In the latest development, China has warned state-owned enterprises to stop participating in Bitcoin mining. This comes after a former government official was sacked for violating national standards by mining digital assets. After the incident, increasing pressure was placed on provinces and municipalities to investigate state-owned organizations.
Mt Gox is one of the things that make the situation worse for Bitcoin. Investors fear that collapsing crypto exchange Mt Gox will take payments from its creditors and sell in the market. After the final approval of the Board of Trustees, the crashing exchange Mt Gox is nearing the end of its recovery plan, where it will return approximately 141,686 Bitcoins to their rightful owners. Many expect these to cause a drop in the market.
Investors see an opportunity to buy a Bitcoin (BTC)
With BTC visiting critical supports, some investors are seizing the opportunity to save. Analyst Willy Woo is among those who see the decline as a buying opportunity.
I think I’ll call this one “buying the dip” pic.twitter.com/57kmAtycGF
— Willy Woo (@woonomic) November 18, 2021
Crypto trader Ran Neuner attributes the current drop to excessive leverage. Speaking on Twitter, the analyst stated that prices could fall as low as $53,000;
“I wish we could get rid of all the leverage and move on even if this market drops to $53000… this slow path is not working!”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.