Blue Chip cryptos such as–Bitcoin, Ethereum, Cardano–have dragged most non-stable coins down with them. DogeCoin has experienced a 8.55% drop while NEAR Protocol has plummeted lower by 17.29%.
The trading volume of Bitcoin, just after noon Eastern Time, stood at over 36.8 B, with the price dropping to $38,438, shrinking its market cap to $729.2 B. Ethereum, the second largest crypto coin by market cap ($332.9 B) declined to $2,779.
Why has the crypto market headed lower?
This week, a House committee held hearings on the environmental impact of cryptocurrency mining.
On a press release dated Jan 12, 2022, Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Oversight and Investigations Chair Diana DeGette (D-CO) announced that the Oversight and Investigations Subcommittee will “hold a hearing on the energy impact of cryptocurrencies.”The hearing has been officially titled, ‘Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains.’”
Bitcoin had climbed from $41,565.10 on January 7th, to close at $43,921.80 on January 12th; however, news of the hearing appeared to concern investors, driving the closing price to $41,709.20 one day before the scheduled January19 hearings.
All markets are being punished
Crypto wasn’t the only segment to have a down day. Bears pushed all major equity indexes lower on Friday.
- The Dow opened Friday at 34,701, and reached a high of 34,896.67, before shedding its gains and finishing the day down -450.02 (-1.3%).
- The NASDAQ was off -385.10 (-2.72) to close at 13,768.92.
- The SP 500 gave up -84.79 (-1.89) to finish Friday’s trading at 4,397.94.
Update: Jan 23, 2022
At the end of Friday, midnight, Bitcoin was trading at $36,456.90 as it trended lower until it hit $34,382.30 at 7:30 PM (GMT) Saturday. It experienced a bounce at 9:30 AM (GMT), where it crossed $36,000 before it dipped again.
Then, at 2:00 PM it tested its resistance level (at the $36,000 mark) but could not push further upwards. Now, as of 9:25 PM (GMT), Bitcoin sits at $35,387.80.
To where have the crypto bulls run?
The short answer is El Salvador.
President Nayib Bukele, the leader of the first country in the world to designate Bitcoin as legal tender (back in September of 2021), announced via Twitter that El Salvador had added to their Bitcoin holdings–buying the dip by purchasing 410 Bitcoins for $15 million.