Cryptocurrencies Sell-Off Continues, Includes BTC & ETH
Cryptocurrencies Falling with Bitcoin d Down 7% and Ethereum Down 8% in the Last 24 Hours
Bitcoin is Trading Below $40.000 Again
Why crypto markets are down today?
As usual, China makes all crypto-related transactions illegal and shuts down Bitcoin mining sites in Sichuan province, which is leading to crypto market prices going down in market value.
Not only Bitcoin, but other leading crypto coins also experienced a significant drop in price after miners or investors began selling their mining equipment as China announced fresh regulations.
Bitcoin plummeted by more than 7% in the last 24 hours and traded at $38,5774 as of 11:19 p.m. ET, according to CoinDesk data.
Ether, the second-biggest cryptocurrency via way of means of marketplace cap, dived 8% within side the remaining 24 hours. It was trading at $2,860 as of 11:20 p.m. ET but only after falling to $2,809.51 yesterday, according to CoinDesk.
China, Elon Musk, and Bitcoin Mining
After accepting Bitcoin as payment for Tesla in February 2021, Tesla became the first electric company that bought $1.5 B of Bitcoin, which in turn sent the market price of Crypto and Tesla surging.
Yet the impact of Bitcoin on the environment of Bitcoin mining makes Tesla doubt its decision and withdraw this option for customers.
“We’re concerned about the rapidly growing use of fossil fuels for Bitcoin mining and transactions, particularly coal, which emits the most pollutants of any fuel,” the billionaire entrepreneur said.
In a Twitter post, Musk reiterated his opinion that cryptocurrency has a “promising future,” but that it “cannot come at a big cost to the environment.”
Also, China starts stressing on crypto a few days after Musk’s shock announcement.
BTCUSD – Technical Analysis
$BTCUSD break support trendline and closed bearish below it. The next target for BTC at this point is $37646.74
WHAT ZFX THINKS…
Crypto in the short-term timeframe is in a J-Curve stage 2 phase right now. Fundamentally, the devs and community are still building the future of blockchain tech (DeFi, SocialFi, GameFi, Metaverse, etc)
If you are a long-term investor, this moment is a good opportunity to do a Dollar Cost Averaging buy on big-cap cryptos.
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