bitcoin this week has been very tough and brought with it its worst performance since November. BTC fell below $ 20,000 today, falling below these levels for the first time since January.
The reason for the sharp price drop seems to be quite complex. Here is a brief summary of all the developments in the market.
First, New York Attorney General Letitia James sued the cryptocurrency exchange KuCoin on Thursday for allegedly violating the law by selling unregistered securities. This triggered a new pressure concern in the community.
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This case is like Ethereum, which regulators interpret as a commodity. cryptocurrency It could have implications for the entire crypto market, as it could change the way you view cryptocurrencies. James is trying to ban the cryptocurrency exchange from conducting any business activity in New York.
Second, President Biden’s budget proposal includes a gradual imposition of a 30% tax on electricity used in cryptocurrency mining. White House officials claim that this energy-intensive practice is hindering the transition to a low-emission energy future.
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The recent sales in US stocks, especially in the financial sector, have severely affected investor sentiment. The Dow Jones Industrial Average fell more than 500 points on Thursday. Other major indices are also on track to post significant weekly losses.
Third, the crypto industry is also the banking institution for crypto firms in the US. Silvergate BankCaught unprepared for the seemingly sudden collapse of .
Finally, concerns remain about higher interest rates after Federal President Jerome Powell’s hawkish comments. Investors are gearing up for an important payroll report on Friday that could shape the direction of interest rates.
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You can follow the current price action here.