Wrapped Bitcoin Drops 5% as Rough Week for Crypto Market Continues
The bears have taken hold of the cryptocurrency market, and even a stablecoin like Wrapped Bitcoin is not safe. Wrapped Bitcoin (WBTC) is currently down 5.25% as of this writing and dropping, placing it at $41,775 (WBTC/USD).
A lot of the major crypto currencies are down more than 4% for the day, even while gold and silver are shooting up. That’s because the crypto market isn’t down due to the economy but rather because there is an impending decision to be made by U.S. regulatory authorities, and the outlook is a grim one for the cryptocurrency market.
Investors and analysts are expecting a decision from the US government that will limit cryptocurrency exchanges, regulating them further. This could make cryptos safer and more stable in long run, but it will likely hurt their value over the short term. We could be looking at a serious bear run for the cryptocurrency market as a result.
Wrapped Bitcoin has very little volition and momentum on its own, as it is tied into Bitcoin by design. Where Bitcoin goes, Wrapped Bitcoin must follow. However, its positioning on the Ethereum network gives it a little more flexibility and increases its liquidity over Bitcoin.
What Happened to the Crypto Market?
On Sunday, Wrapped Bitcoin peaked at $48,213, enjoying a steady level between $47,000 and $49,000. Late that night, however, just as the new week was starting, Wrapped Bitcoin and the greater cryptocurrency market took a dive. The bears had gotten hold of the market and seem to have a firm grip on it for now. It could easily continue to spiral downward for a while, and there is a lot of panic selling going on right now.
We may also see a change for the market around this weekend, as that’s when major changes tend to take place outside of market news. Those looking for an uptick in Wrapped Bitcoin and other cryptos outside the US government regulation decision will want to keep an eye on that period.
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