Here are the top reasons why the cryptocurrency market is down today
Bitcoin (BTC) price , along with the entire cryptocurrency market witnessed ; A correction as traders were left uncertain by reports of “international cryptocurrency enforcement efforts” by the US Department of Justice. Cryptocurrencies plunged in value after it was revealed that the US government would be taking legal action against a relatively obscure Chinese crypto trading platform known as Bitzlato.
Cryptocurrency Market Retreat With Bitzlato News
The DOJ news has the cryptocurrency markets worried; causing the top cryptocurrency by market capitalization to drop by about $1,000; Ethereum (ETH) is returning to the $1,500 level. Other major cryptocurrencies such as Dogecoin, XRP, and Cardano also saw a price drop after the announcement was widely covered by the media.
The majority of investors expect that the US and global regulators will eventually place a heavy regulatory burden on centralized trading platforms ; other companies related to the cryptocurrency sector ; As a result of the large number of crypto-related scams and widespread black swan events that occurred in the year 2022.
Layoffs and economic concerns
The bleak outlook for the United States and the global economy in 2023 could be; Provided by the Davos-visiting banks and the growing tendency of big tech companies to lay off employees are contributing factors to the additional pressure being placed on crypto assets. Recently, Ethereum developer ConsenSys announced its decision to lay off 11% of its workforce globally. Earlier, Coinbase, Amazon, and even Microsoft issued similar notices to their employees.
Enjin coin, Lido, Frax and Chiliz were among the few cryptocurrencies that saw a greater drop in value of more than 5% ; However, it has now recovered slightly after a sharp decline. The total value of all cryptocurrencies in the market is currently $975.95 billion; Which is a decrease of 3% over the previous day.
As it stands, Bitcoin (BTC) price is currently trading at $20,849. This is a decrease of 2.7% on the day, in contrast to a gain of 21.07% for the week according to CoinGape's cryptocurrency market tracker.