The entire sector reportedly shed approximately $200 billion last night, to bring the total cryptocurrency market to a valuation of around $2.6 trillion as of this morning.
And on Tuesday, China’s top economic advisory board suggested cryptocurrency miners may be forced to pay punitive energy prices, relative to the residential prices many companies currently enjoy.
Additionally, exchange-traded fund provider VanEck announced yesterday plans to pivot away from a spot Bitcoin ETF, choosing instead to launch its Bitcoin Strategy ETF Tuesday as a futures-based ETF.
Today, it appears cryptocurrency investors are taking a rather bearish view of the current regulatory environment for miners.
However, proof-of-stake networks such as that of Algorand and Chainlink appear to also be feeling the regulatory heat today.
After all, even the most prominent cryptocurrencies such as Bitcoin have seen major losses of value over extended periods of time in the past.
Thus, the cryptocurrency sector is likely to be on watch as investors digest whether this will be yet another “buy the dip” situation, or more of a prolonged sell-off.