Bitcoin and other cryptocurrencies were again knocked down today (June 21, 2021). As per the blockchain news outlet Coindesk.com that has compiled a list of 20 assets, the highest drag was seen for Filecoin (FIL), while many of them tumbled between 5-10%.
The only crypto seen trading in the green was the USD Coin with the symbol (USDC) - a stablecoin pegged to the US dollar.
Bitcoin, the largest crypto by m-cap, over the 24-hour period suffered losses to the tune of over 4% and was seen trading at $32,491 level, below its support price of $36K. Also, Ethereum has been dragged lower below $2000 mark, with a price cut of over 6 percent, hitting the lowest price since May 23.
Here are the reasons why bitcoin and other altcoins continue to see sell-off
1. Approaching 'Death Cross':
It is a technical chart pattern which signifies potential for a major sell-off. This pattern appears on a chart when a stock or for that matter here bitcoin's short term average price drops below the long term average.
2. Coinbase founder's warning:
Most cryptos have been trembling for over a week now and amid it Coinbase co-founder Fred Ehrsam has issued a warning stating that cryptocurrencies and other crypto assets won't work ahead. "People are going to try all sorts of things. There'll be millions and millions of cryptocurrencies and crypto assets, just like there were millions and millions of websites. Most of them won't work," Ehrsam told Bloomberg.
By this Ehrsam implied that most cryptos "won't work" as well as 90% of the non-fungible tokens or NFTs will fail in 3-5 years.
3. Continuing crackdown on Bitcoin and cryptocurrencies in China:
As per an early Monday announcement, one of the 'big four' bank of China referred to People's Bank of China guidance for continuity in its crackdown on crypto trades. The bank in a statement published in Chinese language on its website said accounts of customers transacting in cryptos will be closed and transactions shall be reported to relevant authorities.