Leading cryptocurrencies slumped Wednesday as a growing number of lawsuits against crypo investors spooked markets, adding to growing concern Bitcoin could fall as low as US$15,000.
Bitcoin declined 3.8% to US$20,084 and its largest rival by market capitalisation, Ethereum gave up 6.2% to US$1,130.
But TerraClassicUSD bucked the trend, skyrocketing 60% in early morning trade.
American lawyers noted increasing evidence that “novel applications of existing laws” have been used to litigate against users and investors of cryptocurrency.
This regulatory uncertainty surrounding crypto has created a “fertile environment” for crypto-related litigation and enforcement to grow, Coin Telegraph said.
“The possibility of BTC price forming a bottom is still remote and there are higher chances that we may see the BTC prices moving towards the US$15,000 if sentiment doesn’t improve,” Naeem Aslam, Avatrade chief market analyst, commented.
92 of the top 100 coins were trading in the red.
Doggy meme-coin Shiba Inu and metaverse-linked Decentraland both sank 10%, while Helium fell 12%.
There were also some notable risers, with 1inch Network and Hive advancing 9.7% and 11% respectively.