Digital currencies in red amid regulatory pressures

Digital currencies in red amid regulatory pressures

The red color dominated the digital currency market during Wednesday’s trading amid concerns that the requirements demanded by many countries to regulate the handling of cryptocurrencies are not being applied.

On the BitStamp exchange, the leading virtual currency the Bitcoin fell by 4.04 percent to $8,000, the lowest in a week, Ethereum lost 5.31 percent of its value to reach $174. Ripple and Litecoin were not in a better place as they fell 3.87 and 5.54 percent respectively.

The market value of digital currencies on Wednesday lost more than $1 billion to a total of $221 billion, as Bitcoin prices continued to fall and most other major cryptocurrencies.

Bitcoin's dominance in crypto market slipped to 66.25%, the lowest level in nearly two and a half months, in the latest signs of slowing levels of investment demand and rising interest in altcoins.

This decline in the value of digital currencies is could be a byproduct of the tighter regulations in the United States in its dealing with the digital currency market in recent period.

The U.S. Securities and Exchange Commission (SEC) on October 9 refused to approve the listing and trading of Bitwise's ETF.

The regulator made it clear that the Fund did not meet the requirements, and Bitwise said it planned to resubmit its proposal in the future.

This decision may be a prelude to the rejection of other fund requests from other companies, and there were high hopes for approval of this type of fund in order to increase interest in investing in that category of new assets.

A report issued by the Group of Seven (G-7) explained the risks associated with cryptocurrencies, saying, "no encryption project should begin until the legal, regulatory and supervisory challenges and risks are adequately addressed."

However, the new Bitcoin tokens available to miners are due to be reduced to less than three million by the end of next week, which could help its price to rebound.

Among the top 10 cryptocurrencies, excluding the stable Tether, Tron and EOS reported the sharpest losses, with -8.21 percent and -6.28 percent respectively, according to CoinMarketCap.

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