Concerned about the US tightening supervision, Bitcoin price plummeted to below $ 30,000

Tram Ho

At nearly 8:00 am on January 22, Vietnam time, the Bitcoin price according to data on Coinmarketcap.com was $ 30,160, down more than 15% compared to 24 hours ago. Before that, there was a time Bitcoin price slipped below $ 30,000 – the lowest in 10 days.

The world’s largest digital currency is now down nearly 30% since its all-time high at approximately $ 42,000 on Jan. 8. The total market capitalization of the global virtual currency market has dropped by more than $ 74 billion in the past 24 hours, or nearly 12%, to less than $ 892 billion.

According to Reuters, the Bitcoin drop comes amid concerns about some possible bubbles in financial markets. In addition, the virtual currency is also under pressure to reduce prices from the fear that the Biden administration will seek to regulate this investment channel more closely.

Lo ngại Mỹ siết giám sát, giá Bitcoin lao dốc về dưới 30.000 USD - Ảnh 1.

In a testimony before the US Senate on Tuesday, Janet Yellen – whom Biden chose as Treasury Secretary – expressed concerns that virtual currencies could be used to fund for illegal activities.

“At least, based on the perceptions of trading, I think there are a lot of cryptocurrencies that are used for illegal funding. I think we really need to look at measures to mitigate this situation and ensure that the Money laundering doesn’t happen through channels like these, “Ms. Yellen said.

Crypto broker Joseph Edwards of Enigma Securities said Yellen’s statements had a strong effect on the market. “Market movements are currently dominated by Ms. Yellen’s assessment of virtual currencies,” said Mr Edwards, although investors are not clear on how the Biden administration can introduce monitoring measures. .

“But I really think this is just a break of upside momentum, rather than a huge change,” added the broker.

Lo ngại Mỹ siết giám sát, giá Bitcoin lao dốc về dưới 30.000 USD - Ảnh 2.

Bitcoin price movements in the past 1 month. Unit: USD / Bitcoin – Source: Trading View.

The cryptocurrency’s rally over the past year has been built on a foundation that more and more institutional investors are entering the field. A report by BlackRock on Wednesday showed that the world’s largest asset management company plans to add Bitcoin futures contracts to a list of possible assets for two of BlackRock’s funds.

Mr. Todd Rosenbluth, an expert from investment research firm CFRA, said that other asset management firms could follow BlackRock’s footsteps and add Bitcoin to their investment strategy once the crypto market matures.

“It is easy to see that the price of Bitcoin has risen sharply over time, and if any investment strategy has Bitcoin, then the rate of return has become better,” Mr. Rosenbluth said. “Large institutional investors have the opportunity to approach the virtual currency futures contract, in a way that individual investors cannot.”

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Source : Genk