Follow Us

Prices in the crypto market dropped on Friday Today

Share on facebook
Share on twitter
Share on linkedin

Share

cryptocurrency
Share on facebook
Share on twitter
Share on linkedin
  • Crypto market had a turbulent week, as the prices remained highly volatile
  • After the historical event in the books of BTC adoption earlier this week, on Friday the princes in the crypto market plunged
  • Regulatory concerns seems to be the reason behind the recent plunge
  • Crypto regulations could work the betterment of the industry

Crypto market has witnessed several spikes along with numerous dips. At the beginning of this year, the market has performed tremendously attracting a global audience. However, the mid-May crash forced several retail investors to exit the cryptosphere. Still, in recent weeks it seemed that the prices began to recover. Last week the cryptosphere saw one of the most significant historical events of Bitcoin adoption. Notably, the event caused a spike in the price of the leading cryptocurrency which ultimately supported the altcoin market. But on Friday, the investors in the cryptosphere saw another dip.

Crypto market plunged on Friday

This week the crypto market remained highly volatile. Earlier this week, the price of Bitcoin surged to $52k since the mid-May crash. However, this week the cryptocurrency faced turbulence, plunging several times below the price level of $45k. 

On Friday, we observed that the price of the three largest crypto coins in terms of market capitalization dropped. Bitcoin was trading at an intraday low of 2.3% over the last 24-hours on Friday. In contrast, Ethereum was down by 3.5% and Cardano dipped by 5% over the same period. 

What caused a dip in the prices of cryptocurrencies?

It seems again the regulations are to be blamed for causing a dip in the crypto market. In a recent Coindesk publication, the report revealed that the European Securities and Markets Authority (ESMA) has criticized the looming environmental costs of mining digital assets. Moreover, ESMA also highlighted the dangers masqueraded by high volatility prices. And also cited that investing in cryptocurrencies could result in risking our hard-earned funds.

According to Coindesk, the European Union is working on rolling out all-encompassing virtual currency regulation. Such regulations include new anti-money laundering rules and tax reporting prerequisites for cryptocurrency firms and investors.

However, we have also noted that it seems the price of BTC bounced due to Ukraine. The country announced that it will legalize and regulate digital assets. On the other hand, the acting press secretary of the Russian President cited that the President is unconvinced that Bitcoin adoption will bring any benefit. Moreover, Russia is planning to regulate cryptocurrency mining in the region.

Will regulating injure the cryptocurrency industry?

According to experts in the cryptosphere, regulating the industry seems not bad. According to Anatoly Aksakov, the Financial Markets Chairman of the Russian State Duma Committee, crypto mining is a type of entrepreneurial activity. Hence, he deemed that it was necessary to include such operations into the state register. Indeed, the nation should regulate it as a type of entrepreneurship under a relevant code, and inflict applicable taxation.

Aksakov also underlined the conception conveyed by Russia’s neighbor to the west, where Mykhailo Fedorov, Ukrainian Minister of Digital Transformation mentioned that the hope that the nation’s regulation of cryptocurrencies will provoke businesses to pay taxes to the budget, but will be protected by the state.

Governments will regulate the crypto industry, and charge tax. While doing so they will become assistants on the tax earnings that digital assets generate. Although investors in the crypto market may not love the idea of regulations, it seems the trend will work to our good.

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00