By now it is lunch time again. We take a look at the live Bitcoin price and the prices of the top 25 crypto. Then we look at why the crypto market is crashing (again) right now. We also share the key points of the leaked US crypto law. After that, we look at which traders are always selling BTC en masse and thus keeping the market under pressure.
We start of course with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price and prices top 25 crash again
At the time of writing, the live Bitcoin price is quoting EUR 27,650.08 ($29,638.88). This is 5.91% lower than during our Bitcoin update yesterday.
The prices of the top 25 crypto are also falling rapidly. Apart from Leo Token (LEO), which is quoting +3.48% and some stable coins we only see red numbers. The biggest loss of the day so far is for Avalanche (AVAX), which is losing 12.41%. On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day.
Why is the Bitcoin price falling so fast?
There are several factors currently at play that are negatively affecting the Bitcoin price. As we have seen for some time, interest among retail investors currently seems to be waning. As a result, the BTC does not have enough strength to allow a bull rally to break through resistances.
There is also distrust. After the Terra (LUNA) situation, it is now the turn of Elrond (EGLD). They closed the DEX due to an unknown exploit. The SEC is also depressing the market. Indeed, late last night it was announced that they are opening an investigation into Binance and their crypto currency BNB. Finally, the leakage of the crypto law (which we discuss below) is causing unease among investors.
In addition, we see that many long-traders use a large spread and this makes them susceptible to price declines. For example, the crypto snowball caused $133 million dollars to disappear from the market already today.
Is the Bitcoin price going for ‘a leg down’ now?
The price drop has brought the BTC price back below $30,000 and with that the way seems open for a further price drop. With that, the largest crypto currency seems to be following the bearish scenario we described in our price forecast.
Bitcoin investors cautious due to leaked crypto law
In the early hours of the day, copies of what was supposed to be the US crypto law began circulating on the internet. Soon it was raining references to the embargoed document that you can read in its entirety at the link.
So although this is a draft version under embargo and there is no official confirmation, many insiders assume that this must be the new US crypto law and people are not happy about that. In summary, the law seeks to regulate the following:
DAOs, stable coin providers and crypto exchanges will have to register with regulators;
There will be a shuffling of which crypto-assets fall under commodities and thus CFTC oversight. The majority of crypto will continue to fall under SEC rules;
In the event of bankruptcy, the assets deposited by investors with a third party will revert to the investors and no longer fall under the estate to be liquidated;
The government is entitled to charge exchanges fees for supervision;
The law provides opportunities for depository institutions to offer their own stable coins.
The law raises fundamental questions in the crypto market:
How does the SEC handle all crypto that should be considered security? The lawsuit against Ripple (XRP) and the investigation into Binance do not bode well;
How many cost increases will these measures bring? To what extent will these be passed on by providers?
Doesn’t this law stop innovation and mass adoption?
This uncertainty is causing investors to be cautious and we are seeing this reflected in the price of various crypto. Moreover, investors seem to have been preparing for an uncertain phase for some time.
These investors are keeping the BTC price under pressure
In fact, research from on-chain metrics shows that mainly US investors sold their BTC in the recent period.
Twitter won’t load because you didn’t give permission.
The entire sell-off since April has occurred during U.S. trading hours.
The cumulative YTD return of BTC during U.S. trading hours has plunged from 4.22% on April 1st to -32.55% today.
During Euro and Asian trading hours, BTC has seen flat returns since Apr 1st. pic.twitter.com/3vmeenHIGb
– Vetle Lunde (@VetleLunde) June 6, 2022
The question is whether we are seeing enthusiastic crypto investors taking profits here or whether there is more to the story. Indeed, we saw earlier that the market is being taken over by institutional investors. This would indicate that we are currently either seeing significant price manipulation, with large parties pushing the price down to get in cheaply or that interest in crypto among institutional investors is really waning. In the latter case, a bleak cryptowinter could await us.
Want to stay informed about the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”