Crytocurrency

Bitcoin is down to $19,000, because cryptos twitch amid the risk of rate hikes

SINGAPORE Cryptocurrencies dropped to new lows on Monday amid concerns about regulation and as investors worldwide were cautious about risky assets as rate hikes are predicted all over the world.

Bitcoin is the most popular cryptocurrency according to market value, dropped around 5percent to hit a three-month lowest of $18,387.

Ether the second-largest cryptocurrency, has dropped by 3%, reaching the lowest level of $1,285 in two months and is down over 10 percent in the past 24 hours. The majority of smaller tokens were in negative territory.

The Ethereum blockchain that underpins the Ethereum token, went through an overhaul this weekend, dubbed the Merge which changes the method by which transactions are processed and decreases the energy consumption.

The value of the token has dropped in the wake of speculation that comments made last week by U.S. Securities and Exchange Commission Chairman Gary Gensler implied the new structure may attract more regulations. The upgrades’ trades also were not completed.

“It’s speculation as to what might or might not happen,” said Matthew Dibb, COO of Singapore cryptocurrency platform Stack Funds, on the regulatory perspective.

Related: Businesses in El Salvador leave Bitcoin out of their plans for technological innovation.

“A lot of the hype has come out of the markets since the Merge,” said the analyst. “It’s really been a sell-the-news type of event,” said the analyst, in light of the global uncertainty and added that ether could hit at $950 in the coming months.

“Looking at the landscape right now, both fundamentally and technically, it’s not looking great. There’s no immediate bullish catalyst that we can see that’s going to prop up these markets and bring in a whole lot of new money and liquidity.”

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