[Digital Today Reporter Hyun-Woo Choo] The virtual asset (cryptocurrency) market turned downward again. The market seems to have turned to a wait-and-see tax as the newly launched US Biden government’s move to regulate virtual assets, along with an increase in selling taxes to realize profits, has taken place.
Based on Coin360 at 6 am on the 21st, Bitcoin (BTC) is trading at $35,015, down 3.96% from 24 hours ago. Upbit, a domestic virtual asset exchange, recorded 38.69 million won, down 2% from the previous day.
Ethereum (ETH) fell 3.17% from the previous day to $1338, Litecoin (LTC) fell 7.14% to $146, Bitcoin Cash (BCH) fell 5.91% to $493, and Ripple (XRP) was 3.46%. It was down 29 cents and Cardano (ADA) was trading at 36 cents, down 1.73%. Despite the overall decline, Polkadot (DOT) traded at $17.96, up 8.28%.
The downtrend in the virtual market is interpreted as an increase in selling due to market overheating and an increase in market uncertainty due to recent regulatory movements.
Cointelegraph analyzed that the increase in selling prices due to overheating of bitcoin derivatives was the direct cause of the downtrend. The fact that there was not a clear uptrend after reaching $40,000 last week served as a factor fueling the market’s anxiety.
Coinpost identified the newly launched Biden administration’s move to regulate virtual assets as one of the factors that caused the market to slow down.
On the 20th, finance minister-nominee Janet Yellen mentioned the need to regulate virtual assets at a Senate hearing, which had an impact on the market. He replied, “Because virtual asset is involved in money laundering or illegal use, we need to find new ways to regulate it.”
Treasurer-nominee Yellen was the chairman of the Federal Reserve from 2014 to 2018, and has consistently expressed critical views on virtual assets such as Bitcoin.