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Sunday, October 24, 2021

Bitcoin Slumps below $40,000 Amid Fed Risk, Regulatory Warnings

  • Gensler of SEC (Securities and Exchange Commission) indicates that private types of currency have gone wrong 
  • One more regulator states that cryptocurrency might create financial system vulnerabilities

According to Bloomberg, Bitcoin clambered for a third consecutive day, slumping temporarily under $40,000. This was the first occasion since August that it happened amid growing censure from regulatory authorities and set a common temper of circumspection in the worldwide markets. 

In Hong Kong, the leading cryptocurrency was slightly modified at around $41,000 at 8:34 in the morning on Wednesday, with a previous slump of around 3.2%. The execution of tokens comprising Litecoin, Solana, and Ether was asserted during the last twenty-four hours.

Scares of transmission arising from the debt dilemma at the China-based Evergrande Group and anticipations that the approaching FED summit would reduce asset-buying afterward in 2021 are some of the deterrents for investors.

The co-founder of Nexo, a cryptocurrency lender, Antoni Trenchev stated that Bitcoin should adopt the two hundred days moving average at a valuation of $46,000 and strengthen before investors can heave a sigh of relief together.

Gary Gensler, the chairperson of the United States Securities and Exchange Commission opined that previous cases of banking institutions and other companies extending private currency varieties have been botched. 

Gary also echoed that the regulations set by US SEC render substantial control to his bureau on digital token currencies. He admits that there is some lacuna in the supervision of digital currencies that Congress can contribute to filling up like controlling cryptocurrency exchanges

In the meantime, the U.S. bureau that had previously been a significant source of optimism for the cryptocurrency domain is now circulating firm cautions to the sector that it is at risk of repeating the lethal trend ahead of the 2008 financial downturn.

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Josie Patra
Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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