Cryptocurrencies continue downward spiral following lawsuit from American regulators

The ongoing decline in Bitcoin and Ethereum continues, as uncertainty is projected to keep influencing the market. Bitcoin, the cryptocurrency with the largest market capitalization, dropped 1.3% to US$26,432, while Ethereum fell 1.9% to US$1,839.

Naeem Aslam, chief investment officer at Zaye Capital Markets, pointed out, “We are certainly a long way from a market recovery.”

Aslam holds that the Bitcoin price is likely to continue facing downward pressure. He further speculates, “The recent price movement hints at the possibility that the price could breach the significant support level of US$25,000. However, this could also spark a surge in bargain purchases at that price level.”

The current market turmoil is largely credited to the US Securities and Exchange Commission’s legal actions against two prominent crypto trading platforms, Binance and Coinbase.

Despite this, Aslam thinks the present volatility shouldn’t match the severity or duration of previous instances, due to the profile of current investors in digital currency.

“Short-term, retail traders, who largely contributed to the heightened market volatility, have mostly been weeded out,” he stated.

In the altcoin sector, Cardano declined 5% to US$0.3265, Solana dropped 7.3% to US$18.59, and Dogecoin decreased 2.5% to US$0.06777.

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