When you take into account the Ethereum prices on March 5, you will realize that it has fallen by approximately 20%. The current rise of Ethereum is around $ 700. In the last few days, it has easily fallen by 20%. It even hit a low of $ 662.
According to most of the experts, the main reason for this downtrend is the news that US and Japanese regulators are trying to take steps to curb the use of cryptocurrencies. Moreover, with the regulators are drafting new rules and regulations, it will be difficult for investors to invest in these cryptocurrencies.
Ever since, this news is out, most of the cryptocurrencies have been consistently falling as well.
According to SEC, cryptocurrency platforms need to register with it.
Only the registered cryptocurrency platforms are legal to operate.
Similarly, Financial Services Agency by Japan actually suspended 2 exchanges stating that they lacked a proper security infrastructure.
Many of the traders are firm in their opinion that the recent fall in the cryptocurrency has been due to these rules and regulations.
With the change in any legal framework, the prices of cryptocurrencies are bound to change.
This is one of the main reasons why many investors are just in the wait and watch mode. Unless and until there is more clarity in terms of the rules and regulations, many investors are slated to stay away from cryptocurrencies. This is the main reason why they are falling consistently as well. Also, at lower levels as well, buying is not emerging.
The fall was further accelerated by the news that Binance was hacked. However, that news turned out to be fake. The exchange confirmed that it was not hacked.
The losses of Ethereum have not been as dramatic from the peak as that of Bitcoin. This is the reason why many of the investors are still invested in Ethereum. However, it remains to be seen whether the cryptocurrency is able to reverse this trend in the future or not. For now, however, it seems like it will fall even more.
Bitcoin has lost almost $ 2000 in the last 2 to 3 days. Thus, the fall of Bitcoin is much higher as compared to some of the other cryptocurrencies. However, one thing which is uniform between different cryptocurrencies is that they are in a bearish trend. Ripple has also fallen by almost 26% from the recent peak which it created a few days back.