The crypto market has not been at its best this year. Late last year and early this year was indeed a tremendous period for the market. Bitcoin (BTC), as well as the rest of the cryptos in the market, saw a massive upsurge in their values. They all tested new highs and Bitcoin (BTC) even traded close to the $20k mark.
However, the crypto market has been on a downward trend since then. The values of the digital currencies are declining at a high rate, and this month just crowns it all. Last week, the value of Bitcoin (BTC) declined sharply due to some misunderstanding in the Bitcoin Cash (BCH) network.
While a lot of investors and traders are hoping things would get better, the slump is devolving into further downward trends. This week has not proven to be any better. The market is still plunging deeper. On Tuesday, the value of Bitcoin (BTC) declined by 13%. The digital currency has lost over 25% of its value so far this week.
Bitcoin has managed to stay of the $6k level for several months. However, this week saw the plunge of the coin close to the $4k level. This is the first time the digital currency is testing this level since October last year.
Bitcoin (BTC) Is Not In This Alone
Bitcoin (BTC) is not the only digital currency suffering the downtrend in the market. Other top digital currencies are also in the boat. Litecoin (LTC), for instance, has also tested a new yearly low. The digital currency is now struggling around the $32 level. Ethereum (ETH) is not left out in the struggle.
The value of Ethereum (ETH) has dropped to about $135. Even though its value is still low, XRP (XRP) seems to be the only coin among the top coins that is doing pretty well. This is because there are lots of developments and positive news around the digital currency.
The Reason for the Price Slump
The recent price trend in the crypto market has been attributed to a lot of factors. Many said it’s due to the recent split of the Bitcoin Cash. Some have attributed it to the fact that the SEC is scrutinizing ICOs and putting an eye on them.
However, another possible reason for the decline is the scrutiny facing Tether (USDT) and the exchange that created it – Bitfinex. Tether (USDT) is a digital currency that is allegedly backed by US dollars. This means one USDT is supposed to be backed by one USD.
Bitcoin (BTC) Price Today – BTC / USD
There is a suspicion that the value of Bitcoin (BTC) had been artificially inflated by investors on Bitfinex during its peak last year by carrying out wash trades. This means they were selling and buying digital currencies in order to create the illusion of activity.
According to Bloomberg, Tether Ltd and Bitfinex are currently being investigated by the Justice Department. The investigation is to find out if investors were using Tether (USDT) to purchase BTC in wash trading scheme.
However, Tether Ltd is denying the claims. But with the imminent threat of an impeachment, chances are Bitcoin (BTC) is returning close to its actual price due to the fact that it’s no longer propped up.