After a minor rebound over the weekend, the cryptocurrency market was under pressure on Tuesday. Virtual coins are currently experiencing wild price swings as a result of several developments.
Bitcoin (BTC), the world’s most popular cryptocurrency, was trading at $33,124, down nearly 4%. Ether (ETH) has dropped almost 7% and is struggling to stay above $2,000.
The entire cryptocurrency market is currently experiencing a broad-based slump. Popular altcoins such as XRP, Cardano, Dogecoin, Stellar, Uniswap, Polkadot, and Litecoin are falling sharply.
The recent weakness in the cryptocurrency market is primarily the result of a $408 million seizure of virtual coins. British police are a part of an investigation into money laundering by organized crime groups.
That could be a significant blow to cryptocurrency trading in the United Kingdom, where central virtual coin exchange platform Binance is already under regulatory scrutiny. On Tuesday, London police announced the seizure of 180 million pounds of an anonymous cryptocurrency. This comes less than three weeks after a 114-million-pound haul as part of the investigation on June 24.
While cash is still king in the criminal world, as digital platforms evolve, we see more organized criminals use cryptocurrency, according to Metropolitan Police Deputy Assistant Commissioner Graham McNulty.
Short-term volatility in the cryptocurrency market expects as a result of this development. Meanwhile, according to data provided by London-based researcher CryptoCompare, trading volumes at significant cryptocurrency exchanges fell by more than 40% in June. Spot trading volumes were down 42.7 percent to $2.7 trillion, while derivative volumes were down 40.7 percent to $32 trillion.
Ethereum shows troubling signs as it falls below the critical support level amid significant profit-taking, falling by 5%. Weak buying pressures from institutional investors have yet to bail out the leading altcoin, as weekly crypto investment product volume falls to its lowest level in many months.
Previously, investors increased their buying pressure on Ethereum because it has become the most popular and widely used development platform. The most recorded real-world use-cases among all intelligent contract applications. Ethereum, the second most valuable crypto asset, has already lost more than half of its value, with a recent chart pattern predicting further declines as it struggles to maintain a price above $2,000 per Ether token. A global, open-source platform for decentralized applications is the most popular altcoin. In other words, the goal was to develop a platform on which anyone could build applications in a decentralized manner.