Bitcoin loses 50-week moving average as 24-hour crypto long liquidations top $1 billion
Bitcoin closed below its 50-week moving average as more than $1 billion in crypto long positions were liquidated.
Bitcoin and Ether, the world's two largest cryptocurrencies, plummeted to their lowest levels since August as investors expressed worries that a Democrat-controlled US Congress could introduce stricter regulations. Several Democratic lawmakers have criticized the crypto industry and called for increased oversight, fearing regulatory changes following their victory in the recent US midterm elections.
Bitcoin, the largest cryptocurrency by market value, dropped around 2% to $73,708, marking its lowest point since August, while Ether, the second-largest cryptocurrency, fell by 5% to $2,223, also touching its lowest since August. The price movements came after initial optimism following Democrats' electoral triumph was replaced by concerns about potential regulatory changes.
US Senator Elizabeth Warren, a strong critic of the cryptocurrency industry, is expected to lead the influential Senate Banking Committee, which could increase pressure on crypto companies to comply with stricter financial rules. Heavy withdrawals from Bitcoin exchange-traded funds (ETFs) last week indicate that institutional investors are becoming increasingly cautious about the future of cryptocurrency, driven by concerns about potential regulations.
While other major digital currencies like XRP, Solana, Cardano, and BNB also experienced declines, the downfall was not limited to Bitcoin and Ether.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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