Bitcoin Price Prediction: Market Cap Plummets, Gensler Expresses Concerns, and Luno Restricts UK Investments
As Bitcoin faces tumultuous waters, trading at $25,187 with a 2.16% decrease on Tuesday, the broader cryptocurrency landscape also experiences significant shifts.
The entire cryptocurrency market capitalization has plummeted below the $1 trillion threshold, largely influenced by major players—often referred to as 'whales'—offloading Bitcoin and Ethereum.
Adding to the apprehensions, Gary Gensler, prior to his Senate testimony, has once again vocalized his concerns regarding cryptocurrency, revisiting familiar criticisms.
Concurrently, in anticipation of tightening regulations, Luno, a prominent cryptocurrency exchange, has taken pre-emptive measures, barring certain UK clients from investing in digital currencies.
The cryptocurrency market has slumped, with its total capitalization dipping below the $1 trillion mark, a six-month low.
This 2.84% decline wiped nearly $29 billion from the market's value, bringing it to just over $987 billion.
This decline was fueled by concerns surrounding Solana and the FTX hearing, prompting investors to engage in panic selling, an uncommon phenomenon in recent months.
Large trading firms like Jump Trading, Abraxas Capital Management, and Wintermute Trading added to the market's bearishness by depositing over $30 million worth of Bitcoin, Ethereum, and Arbitrum on various exchanges, aligning with the bearish sentiment.
In the futures market, the past 24 hours saw a notable liquidation of long contracts, amounting to nearly $150 million, the highest in three weeks.
This challenges investors seeking to recover losses in the current bearish climate. Consequently, Bitcoin (BTC) is experiencing a decline in its price today due to these market developments.
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