Bitcoin and other prominent altcoins experienced a major dip in price. BTC price dropped by 5.63% in the last 24 hours amid raising FUDs. Metric from Bybt shows huge sell-offs in the last 24-hours about $315.58 million. As per the reports, the crypto community believes there are various factors driving the present Bitcoin price dump.
Bitcoin fell as caution ahead of this week’s Federal Reserve (Fed) meeting weighed on US stock index futures. Raising FUD’s claim that the US government may declare stablecoins as a risk to the present financial system. This could be the major reason causing huge BTC liquidations.
Popular crypto analysts Lark Davis also pointed out that the FED news and the Infrastructure Bill could heavily impact the crypto market.
Moreover, the deadline for the U.S Infrastructure Bill is coming up to its deadline this week and hence a notable impact on the crypto space could be imminent.
Also Read: Bitcoin Price Tanking Hard Yet $100K Still Achievable By The End of 2021
Bitcoin price has seen a dramatic breakdown as a broad sell-off sparked by FUDs about contagion from the Evergrande group. In short, the problem is that the real-estate company is suspected of not being able to pay its loans. drop to 85% on concerns the real-estate giant might default on $83.5M in interest payments due this Thursday.
Therefore, the crypto market is down. Community think the market will be dragged down by the western markets which are being dragged down by a Chinese real estate firm. Popular crypto educator, Mr Anderson came up with a tweet addressing the market volatility. He said that legacy markets could give rise to high-risk environments.
South Korean exchanges have until September 24th to register as legal platforms. As a result, almost 35 of South Korea’s roughly 63 crypto operators might shut down. As per reports, only 28 companies had received certification from Korea Internet and Security Agency (KISA). Previously some exchanges were involved in money laundering and tax evasion, therefore the country has come up with regulatory changes.
Adding to this, the South Korean government further stated that in 2022, the government will introduce a crypto capital gain tax. If this law comes into effect, then investors who make over $2135 bitcoin profits, should pay 20% tax. These factors could affect the BTC price in the future as well.
Overall, the crypto market drop seems to have impacted at the highest due to the above-mentioned reasons. China had played a major role during the mid-may crash and to everyone’s surprise, the current downtrend is also directly or indirectly share roots from China. However, the crypto market could continue with the downtrend until the uncertainty over the crisis or regulatory issues prevails.
Also Read: Bitcoin Price Tanking Hard Yet $100K Still Achievable By The End of 2021
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