Bitcoin positioned for a third day, falling slightly below $ 40,000 for the first time since August amid mounting criticism from regulators and a general mood of caution in global markets.
The largest cryptocurrency fluctuated around $ 41,000 at 8:34 a.m. in Hong Kong on Wednesday, having previously fallen by as much as 3.2%. The performance of tokens, including Ether, Solana, and Litecoin, have been mixed over the past 24 hours.
Fears of contagion from the debt crisis at China Evergrande Group and expectations that the next Federal Reserve meeting will signal a reduction in asset purchases later this year are among the impediments for investors.
“Bitcoin needs to pick up the 200-day moving average at $ 46,000 and consolidate before a collective sigh can be released,” said Antoni Trenchev, co-founder of cryptocurrency lender Nexo.
In a discussion Tuesday on cryptocurrencies, the chairman of the U.S. Securities and Exchange Commission, Gary Gensler, said that past instances of banks and other companies offering private forms of money have failed.
Gensler reiterated that the US securities rules give his agency great authority over digital tokens. He also said there are some “gaps” in oversight of digital tokens that Congress could help close, such as regulating crypto exchanges.
Meanwhile, the American agency that was once the great hope of the cryptocurrency world is now issuing strong warnings to the industry that it is in danger of echoing the toxic culture ahead of the 2008 financial crisis.