Bitcoin and Ethereum down as sell-off continues

Bitcoin and Ethereum both tumbled back below key support levels as the sell-off in cryptocurrencies continued.

The largest coin by market cap fell 3.42% to US$29,371, as it continued to flirt with its key support of US$30,000.

Meanwhile, Ethereum fell 2.95% to US$1,984 and like Bitcoin, it remained close to its own key support level of US$2,000.

According to Ipek Ozkardeskaya, an analyst at Swissquote Bank, today’s sell-off “certainly has to do more with the overall risk-off mood this morning, rather than Christine Lagarde’s view that the cryptocurrencies are worth nothing”.

In a recent interview on Dutch television, Lagarde, who is the president of the European Central Bank, said she believes cryptocurrencies are worthless and should be regulated to protect inexperienced investors.

Ozkardeskaya suggested that “the fact she wants them regulated may have had a certain impact on the mood” in the crypto market.

Calls for regulation in the past have often been met with mixed views by investors and analysts alike.

Some have welcomed the calls, believing it would lead to the widespread adoption of cryptocurrencies. Others, on the other hand, have been totally against the idea as it takes away one of the key attractive factors of cryptocurrency – which is that it is decentralised.

In some of the altcoins, Solana was down 5.2% to US$49.89, Polkadot was down 3.14% to US$9.93 and Avalanche was down 7.7% to US$29.28.