Bitcoin, XRP and ETH were hit hard!
The cryptocurrency markets shook hard this morning. The leading cryptocurrency Bitcoin (BTC) has dropped from $ 19,200 to $ 17,300 and still continues to decline. Of course, in the continuation of this, it is seen that there is an earthquake effect in altcoins. ETH fell to $ 511 and XRP to $ 0.51.
Why Did Bitcoin Price Drop?
Although many investors cannot see a significant reason behind this sudden decline, the source of this news is actually based on the USA. Brian Armstrong, CEO of Coinbase cryptocurrency exchange, emphasized that the reason for the Bitcoin price falling and bringing down all the altcoins is the USA. The famous CEO stated in a statement he made on Twitter that the accident related to regulations in the USA was boiling.
Armstrong stated that the US Treasury Secretary Steven Mnuchin was preparing to take a move to restrict the use of cryptocurrencies. Taking a step by Mnuchin, the USA to ban or restrict the use of individual cryptocurrencies, could definitely mean a nightmare for the cryptocurrency industry. For the time being, any user can open his / her own cryptocurrency wallet and transfer it to any person. It is stated that the USA wants to spoil this exactly.
New Rules for Crypto Money Exchanges
In his statement on the subject, the famous CEO emphasized that crypto exchanges such as Coinbase may have to authenticate personal wallet owners before each transfer. In the continuation of this, almost everyone who uses DeFi applications, online shoppers, send money to other countries, and in short, almost everyone who uses cryptocurrencies can be affected.
Although this is only spoken in the US backstage for now, the country’s being the heart of the cryptocurrency industry has affected the whole market. The news that institutional investors in the USA are also starting to sell crypto money in their hands occupy the agenda.
After USA, Europe’s Turn
If the USA takes such a step, we can witness similar moves coming from Europe in the future.
This points to serious disruptions in the use of many cryptocurrencies, including Bitcoin, and the situation will worsen. While cryptocurrencies are in situations where they cannot be directly banned, the US could take a big hit on the industry by breaking the bridge to fiat currency.
This news alone caused the crypto money market to lose nearly 20% this morning.