The cryptocurrency market had a fatal week as the market capitalization of the entire market shed approximately 17% over the week. This represents a $270 billion decline which put the current market capitalization at $1.36 billion from $1.63 billion at the start of the previous week.
What caused the decline?
Bitcoin bulls, after crossing the $40,000 trading mark, failed to maintain their position over a series of events that occurred during the week. These events caused massive FUD (Fear Uncertainty and Doubt) in the market which caused the bears to take over, thereby instigating a massive sell-off over the weekend.
Bitcoin has been weighed down by ongoing regulatory uncertainty and environmental concerns. On Thursday, miners in Ya’an, one of the major crypto mining hubs in China’s Sichuan province, received an inspection notice that required shut-downs. Friday, Wu Blockchain reported that Alibaba Cloud, China’s largest cloud service provider, made calls to cryptocurrency and mining companies registered in China regarding potential domain name cancellations due to regulatory requirements. This has also dragged down the entire cryptocurrency market.