Rumors of a stronger crackdown on money laundering in America are weighing on the prices of many cryptocurrencies. Bitcoin temporarily lost around 15 percent on Sunday.
VMany cryptocurrencies are under significant pressure from rumors of stronger action against money laundering over the weekend, before developments stabilized on Monday. Bitcoin, the oldest and best-known of all digital currencies, fell by around 15 percent at times on Sunday.
Other crypto assets were also hit hard. Ether, the second largest Internet currency in terms of market value, fell at times by around 18 percent in value before recovering slightly.
Speculations that the US Treasury Department could step up against the use of cryptocurrencies for money laundering were cited as triggering the sell-off. This was reported by several websites specializing in news about crypto values. The rumor could also be read on relevant Twitter accounts from the crypto scene.
The Bitcoin price fell on the Bitstamp trading platform from a good $ 60,400 to around $ 51,540 at times. On Sunday lunchtime, a Bitcoin cost around $ 55,000, and on Monday it was $ 57,600. Just last week, the price had hit a record high of almost $ 65,000. The ether price collapsed from about $ 2,430 to about $ 1925 on Sunday and was most recently at $ 2,125. Other crypto currencies such as Litecoin or XRP also fell sharply in some cases. The market value of all over 9,000 crypto values fell from around 2.2 trillion to around 1.9 trillion dollars.
The renewed price slump shows that digital currencies remain very volatile despite their steep rise. In the past few months, Bitcoin and Co. have benefited greatly from increasing interest on the part of large companies and financial investors. The Bitcoin price had roughly doubled since the beginning of the year and roughly sixfold since autumn. Other crypto stocks had also risen sharply. Just last week, the Coinbase trading platform on New York’s Wall Street made a brilliant debut on the stock market.
However, the reputation of the entire market remains undermined. A constant allegation is that digital currencies can be used for illegal purposes due to high anonymity in the payment process. State institutions such as regulators or central banks are correspondingly critical of the hustle and bustle on the crypto market. Last Friday, Turkey banned payments in digital currencies with effect from the end of April.
The industry service CoinMarketCap.com blamed a power failure in the Chinese region of Xinjiang for the price slide. According to the information, there are numerous Bitcoin miners sitting there. They provide the cryptocurrency network with computing capacity to verify and encrypt transactions. For this they are rewarded in Bitcoin.