The crypto market recovery stagnated on Thursday, with regulators and governments focusing on the sector, while investors turned to cash on the rally that started earlier this week as Iran imposed its temporary ban on cryptocurrency mining the previous day.
Many major cryptocurrencies fell by about 5%, according to Coinecko data, while the coins on the board were down by Thursday. Bitcoin fell 4.9% within 24 hours and was trading at $ 38,336.14. Bitcoin hit record levels in April, but has since lost more than 40% of its value from Thursday’s valuation.
The world’s largest cryptocurrency is on track to hit its biggest monthly decline since November 2018 this month. Since the beginning of the month, Bitcoin has dropped by almost 34%, almost matching the 37% drop in November 2018.
Ethereum, the second largest cryptocurrency, was down 4% until mid-Thursday and was valued at $ 2,738.64. It hit record highs earlier this month and fell 37.5% in the past two weeks alone.
Binance’s BNB token fell 5.3%, XRP lost 4.9% and DOGE fell 6.3% in 24 hours. The situation was the same for other cryptocurrencies.
The crypto market has been cooling off in recent weeks as an increasing number of governments and regulators have indicated that tighter restrictions and rules may be imminent, plaguing crypto investors.
Recently, Iran banned crypto mining in the coming summer for fear of power outages. In recent weeks, several outages have occurred due to the overload of the country’s electricity grid.
China is leading the pressures on crypto mining and trading, which caused several crypto firms to cease operations in the region earlier this week. In the US, SEC Chairman Gary Gensler reiterated that the authority will be ready to fight bad actors in the crypto industry. Safety and environmental concerns and investor protection were cited as reasons for increased regulatory attention.
Environmental concerns led Elon Musk’s Tesla to discontinue bitcoin payments this month after it pioneered the use of cryptocurrencies as a form of payment for goods and services.
Despite such downsides, the crypto market may be on its way to recovery.
Overall, crypto markets are looking to break out of a busy and volatile month next week, potentially breaking out of the bearish price action that has come with it. All in all, despite the high volatility, Bitcoin’s sentiment among investors seems largely unaffected.