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The most important reasons behind the decline of the cryptocurrency market

The most important reasons behind the decline of the cryptocurrency market

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Answer The most important reasons behind the decline of the cryptocurrency market

Bitcoin (BTC) price, along with the cryptocurrency market in general, witnessed a correction after a series of gains over the past days.

The value of cryptocurrencies plummeted after it was revealed that the US government would be taking legal action against a relatively obscure Russian cryptocurrency exchange known as “Bitzlato”.

The cryptocurrency market fell after the “Bitzlato” news spread:

The DOJ news unnerved the cryptocurrency markets, causing the value of the top cryptocurrency by market cap to drop around $1,000, with the price of Ethereum (ETH) back to the $1,500 level.

Other major cryptocurrencies such as Dogecoin, XRP and Cardano also saw a price drop after the announcement was widely covered by the media.

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The majority of investors expect that the US and global regulators will eventually place a heavy regulatory burden on central exchanges and other companies associated with the cryptocurrency sector as a result of the large number of crypto-related frauds and the prevalence of black swan events that occurred in 2022.

Layoffs and More Economic Concerns:

The bleak outlook for the United States and the global economy in 2023 and the growing tendency of big tech companies to lay off employees could be contributing factors to the additional pressure being placed on crypto assets.

Recently, Ethereum software development company ConsenSys announced its decision to lay off 11% of its workforce globally.

Earlier, Coinbase, Amazon, and even Microsoft issued similar layoff notices.

Enjin coin, Lido, Frax and Chiliz were among the few cryptocurrencies that saw a larger drop in value however are now starting to recover slightly after the sharp decline.

The total value of all cryptocurrencies on the market is currently $968 billion, which is a decrease of almost 3% compared to the previous day.

Currently at press time, Bitcoin is trading at $20,780, which is a 2.1% drop on the day while on a weekly basis, Bitcoin is up 14% for the week, according to coinmarketcap.

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Many analysts indicated that Bitcoin and the market in general are on the verge of a decline after the continuous rises in the past days, so the news of the “Bitzlato” platform came and accelerated the matter.

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