The price of bitcoin ( BTC) dropped below $30,000 late Monday night for the first time since Jun. 22, dragging other digital coins lower with it. Bitcoin was trading in the $29,000 range, about 3% lower on the day.
The plunge came amid news that the New Jersey Attorney General issued a Cease and Desist Order against the New Jersey-based crypto services firm BlockFi, ordering it to stop offering interest-bearing accounts, according to Forbes and later confirmed on Twitter company CEO.
BTC has been hit by many setbacks of late, including China’s regulatory crackdown, partly over concerns about high energy consumption by crypto miners and progress in central bank digital-currency projects that could squeeze private coins. Bitcoin’s price has roughly halved from a record high three months ago.
Additionally, earlier last week, Tik Tok, the social media giant, also banned influencers from promoting cryptocurrencies sitting cases of fraud from sources that are not legitimate and would consequently affect legal sources.
However, Bank of America, the second-largest bank in the U.S., has approved Bitcoin futures trading for some clients. Like most institutions, the bank has been conservative in its approach to the crypto sector, but due to a large amount of margin required to trade the futures, it is now allowing some clients to access the crypto market.
A number of investment banks are reportedly allowing clients to invest in crypto products. In March, Goldman Sachs confirmed plans to relaunch its cryptocurrency trading desk after a three-year hiatus. In May, the investment bank started buying and selling bitcoin futures in block trades through Chicago Mercantile Exchange (CME) Group, using Cumberland DRW as its trading partner.
Other Cryptocurrencies follow bitcoin’s trend.
Ether, the second-largest cryptocurrency by market capitalization, declined 1.25% following the plunge by BTC. Currently, ether is trading at $ 1868.51, a 6.25 % rise.
On the other hand, Dogecoin was down over 7% to $0.17, whereas other digital tokens like Cardano, XRP, Litecoin also fell in the range of 3-8% over the past 24 hours.
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