Trading | 3 months ago
From last one-month cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and many others are facing tough times due to multiple regulatory and security issues. The latest sell off in the crypto currencies was on Tuesday due to the discovery of a security loophole in Bitcoin. This created a short-term panic in the cryptocurrency market.
Transaction volumes across the cryptocurrency market are gradually slowing down. Bitcoin, Ethereum, and all other cryptocurrencies remained in a bearish zone and under pressure. China which is the second largest economy in the world has already issued warning against the use of cryptocurrencies for payments. Even the United States authorities suggested that more transparent regulations are needed for the digital assets.
As a result of these updates regarding the cryptocurrency market, cryptocurrencies suffered an aggressive downside pressure which resulted into an extended sell off.
Bitcoin fell by over 35.50% in the month of May and the selloff still continues to June. So far in this month Bitcoin is down by 7%. Bitcoin broke the $35,000 support level yesterday after the rumors of discovery of security loophole in Bitcoin transactions. One must look for short-term selling opportunities in Bitcoin at any major resistance zone.
Ethereum and Dogecoin also faced a sell off after the Bitcoin due to their inherent nature. Yesterday Ethereum fell by over 4% against the US dollar while the Dogecoin fell by over 11% against the US dollar on Monday. The regulations regarding cryptocurrencies will also be discussed at the G7 summit. Cryptocurrency market is expected to be more volatile during the summit. Therefore, one must look for selling opportunities in Ethereum and Dogecoin with a proper hedge.
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