The past week turned out to be the worst for the crypto market in history amid negative news. Bitcoin fell 24% in a week, altcoins from the top ten lost from 41% to 60%.
The total cryptocurrency market capitalization, according to CoinGecko, sank 38% over the week.
To the criticism of bitcoin by Elon Musk, the actions of the Chinese authorities were added, which announced on Friday that they would fight against cryptocurrency mining in the country. The authorities are trying in this way to protect the financial system and at the same time reduce carbon emissions.
The ban on digital coin mining took the industry by surprise. These measures could affect the entire cryptocurrency industry, since 65% of the bitcoin hashrate comes from China, writes beincrypto.
Earlier last week, Chinese regulators announced their intention to ban the use of digital tokens in financial transactions.
On May 20, the US Treasury announced a new proposal by the Joe Biden administration to strengthen tax compliance – to oblige bitcoin exchanges to report transactions worth more than $ 10,000.
According to US authorities, digital assets are a “serious problem.” They promote illegal activities, including tax evasion. Presumably, the new measures will take effect from 2023.
Gary Gensler, who heads the Securities and Exchange Commission (SEC), believes that a mechanism needs to be developed that will protect the interests of holders of digital currencies.
The SEC recently urged investors to refrain from trading Bitcoin-focused products.
A possible SEC investigation into Tesla CEO Elon Musk on suspicion of manipulating the crypto market could become one of the negative impulses and lead to a fall in cryptocurrencies, experts say.
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