Bitcoin became the cheapest in two months. The market fears regulation

The cryptocurrency market is getting nervous again. The price of bitcoin is approaching the $26,000 mark, a level that has not been seen for almost two months.

Cryptocurrencies in Trouble

Investors who have cryptocurrencies in their wallets will again have a hard time, those who were waiting for their discount are preparing to buy. The market got nervous again. There are several reasons for the subsequent significant decline.

Bitcoin is already worth almost 26 thousand. dollars, and it looks like he will overcome this limit. The second largest cryptocurrency, Ethereum, is currently valued at $1,770. Both lost over 11% in a week. its meaning. There is currently no green color on the market.

Investors fear regulation

According to experts, the market is currently struggling with three problems. First, low liquidity. Due to the high risk and expected regulatory changes, investors have reduced their cryptocurrency trading. Second, the aforementioned concerns about the actions of regulators. More and more countries are discussing more seriously the need to strengthen control over digital currencies. Top US officials are talking about this as well.

The activities of the US Senate committees intensified after the bankruptcy of the FTX exchange. The market was not helped by the way the problems of one of the largest exchanges arose. A scam perpetrated by founder Sam Bankman-Freed has caused regulators to raise another red flag.

Thirdly, the cryptocurrency market, like almost all other markets, is worried about the economic downturn. More and more countries are reporting that persistently high interest rates are starting to take their toll and hinder GDP growth.