On Monday, the cryptocurrency markets present a bearish picture as majority of the coins, including Bitcoin, are down. According to a rough estimation, nearly $150 billion liquidate as a result of massive sell-off.
Drop to $34,000
Bitcoin has witnessed a big pullback today after claiming all-time high of $40,000 on January 8. Due to a major liquidation state, the top digital currency’s price value has reached as low as $34,000 after decreasing by 17%.
Some crypto analysts expect $30,000 if bearish sentiments remain in the BTC markets. “A lot of selling pressure going on right now so if we break below, I would say $30,000 seems likely,” a Twitter user explained.
If the king cryptocurrency moves down, the altcoins will even suffer more. For instance, prominent analyst Josh Rager thinks altcoins will lose more values than Bitcoin if bearish sentiments remain intact in the industry.
Ethereum, the second-biggest coin, has lost 16% of its value in the last 24-hours. Ethereum, recently, reached as high as $1,350, but after Monday’s crash, it touched $1,100. Similarly, Litecoin and XRP are trading at $145 and $0.27 after decreasing by 18% and 17%, respectively, over the day.
Financial Conduct Authority (FCA) of the United Kingdom has warned investors of potential risks attached to crypto investment. The regulator said people might lose money after investment in crypto products. FCA stated:
“Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them. They should check and carefully consider the cryptoasset business involved.”
It also elaborated that the crypto-related companies’ users cannot register a complaint at the Financial Services Compensation Scheme or the Financial Ombudsman Service if they lose money in crypto products.
The crypto-related firms operating in the UK are required to comply with FCA. Otherwise, they will have to face legal cases from law enforcement agencies. “Operating without a registration is a criminal offence,” it added.
Despite warnings from the legal institutions, people are taking a deep interest in cryptocurrency. Even major investment companies are attracted towards Bitcoin and have invested billions of dollars in the leading cryptocurrency. On-chain data shows the number of retail traders has also jumped higher over recent months.
At press time, the top digital coin is trading at $36,132 after plunging by 13.30% over the day.