The cryptocurrency was beaten in a brutal 24 hour period, with bitcoin in particular suffering a loss of $ 14,000 in just 60 minutes.

The cryptocurrency was battered in a brutal 24 hour period, with some coins dropping as much as 20% of their overall value.

On Friday AEDT, the overall cryptocurrency market cap stood at $ 3.7 trillion, but now speculative coins are only worth $ 3.1 trillion. About $ 570 billion was wiped out in a single day.

Bitcoin, the number one cryptocurrency, is down 16%, losing $ 21,400 from its price since the previous day, according to figures from CoinDesk.

At one point, he lost $ 14,000 of its value in just 60 minutes.

Several weeks ago, things were very different, as bitcoin hit a new high of $ 98,000. At its lowest point today, it was $ 60,000 per token.

Bitcoin isn’t the only crypto to have been gutted in the past few hours. All other major players, including Ethereum, Binance’s BNB, solana, cardano, and Ripple’s XRP saw declines of around 10%.

And there’s a simple reason why – rumors are surfacing that stricter crypto regulations are imminent, causing a massive sell-off globally.

An economic forecaster has predicted that the crypto market is about to have its hands tied with bureaucracy, and he estimates that bitcoin will soon be worth just $ 14,000 apiece.

Just before the weekend, well-known investor Louis Navellier warned that the US central bank could start “banging” crypto, which could ruin the market.

“The Fed is shrinking, which should create a correction in risky assets, of which bitcoin is a part,” Mr. Navellier wrote.

“The more the Fed declines, the more volatility we should see in stocks and bonds – and yes, bitcoin too.”

He added that he could see bitcoin dropping to near pre-pandemic levels in terms of price, and believed it could stay at that level.

“I would take a drop below US $ 46,000 (the 200-day moving average) to be a yellow flag and a drop below the spring low of US $ 28,500 to be a massive double top completed, which indicates a drop to less than US $ 10,000, which would correspond to many of the multiple drops of over 80% of its rich history, ”he wrote.

The news sent the market into a free fall.

Bitcoin is now at its lowest since September.

At the time of writing, bitcoin was slightly above its 24-hour low at $ 68,000.

However, some see this as a temporary incident for bitcoin, with crypto enthusiast (and President of El Salvador) Nayib Bukele making the most of the opportunity.

He announced that he was going to “buy the dip” to add to his nation’s reserve. El Salvador was the first country to turn bitcoin into legal tender.

The crypto market is notoriously volatile and at the end of last month the Reserve Bank of Australia warned crypto investors that they risk holding speculative assets with “niche” uses that could lose most of the money. their value.

RBA Payments Officer Tony Richards said the value of many cryptocurrencies has been driven by “fads and a fear of missing out” and could collapse when central banks decide to exercise the control of their monetary systems.

“I think there are plausible scenarios where a series of factors could work together to significantly challenge the current fervor for cryptocurrencies, so that current speculative demand could start to reverse, and a much of the price increases of recent years could be reversed, ”he said. told the Australian Corporate Treasury Association in November.

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