Bitcoin Slumps Below $23,000: Is Crypto Regulation to Blame?

• Bitcoin (BTC) dropped to a four-week low on Thursday morning.
• The crypto asset slipped below its hovering $23,000 price range to as low as $22,408 before climbing back up.
• The slump is due to ongoing rumors about cryptocurrency regulation being investigated by top U.S. financial regulators.

Bitcoin (BTC) Drops Below $23K

In the early hours of Thursday, Bitcoin (BTC) the largest cryptocurrency by market cap, sank to a four-week low. The crypto asset slipped below its hovering $23,000 price range to as low as $22,408 before climbing back to its current price.

Regulators Pestering The Industry?

Bitcoin’s slump below its $23,000 range is due to the ongoing crypto regulation rumors circulating in the industry. On Wednesday, Bloomberg reported that a top U.S. financial regulator is currently investigating crypto exchange Kraken over a suggestion that it breaking security rules related to certain offerings to U.S. customers. Hours after that, Coinbase CEO Brian Armstrong voiced out via a five-tweet thread, rumors concerning the SEC wanting to get rid of crypto staking in the U.S for retail customers.

Impact Of Staking On Crypto Space

Brian expressed the importance of staking in the industry saying, “staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks.” He further noted that staking brings many positive improvements such as scalability and increase security while reducing carbon footprints in space”.

Bitcoin (BTC) Slips More Dip?

Bitcoin has always been vulnerable to being influenced by happenings in the industry and this bearish movement comes after investors and traders were convinced of an ongoing bull run that could take it back higher than ever before this year January when BTC surged nearly 40% crossing above $20k mark and peaking at around $42k mark recently but now slipping again below 23k region causing loss of billions from market capitalization within few days between Wednesday and Thursday alone .


The latest dip has shown how much volatility exists in cryptocurrencies and how any news regarding regulations or government policies can have an impact on them leading either bullish or bearish trends depending on what news was released and how investors reacted towards it . Therefore trading with caution should be kept in mind at all times when investing into cryptocurrencies .