A broad-based slump was observed in the cryptocurrency market on Wednesday as popular virtual coins slumped sharply. Most cryptocurrency valuations fell due to higher sell-off pressure.
Bitcoin, the world’s most popular cryptocurrency, was down nearly 4 per cent at $31,909.53 at 1:05 pm. Ether, too, fell nearly 7 per cent and is struggling to remain above $1,900.
All other popular altcoins such as Cardano, XRP, Dogecoin, Stellar, Uniswap, Polkadot and Litecoin fell in the range of 6-12 per cent.
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Cryptocurrencies have been struggling to gain any real momentum for the past few weeks due to a regulatory probe against a major virtual coin exchange platform, Binance. Increased scrutiny against crypto trade in some countries has also led to higher crypto outflows.
Cryptocurrencies have been struggling to hold momentum ever since China started cracking down on crypto trade and mining in the country. Regulatory authorities in China have initiated a series of actions to completely curb trading activity involving virtual coins.
In the latest round of action against virtual coins, Anhui in eastern China has announced a sweeping ban on cryptocurrency mining. It said the move will help ease an acute power shortage of the next three years.
Edul Patel, CEO and Co-founder of Mudrex, a global algorithm based crypto trading platform, said, “The past 24 hours witnessed most of the cryptocurrencies dragged down heavily by the bears. BTC is down by approximately 3.7% and is above the $31,500 mark.”
“However, the sell-off has been massive across the altcoins.