Cryptocurrency price drops to new lows as investors turn shy

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Cryptocurrency price drops to new lows as investors turn shy

On Monday the price of cryptocurrencies dropped to new lows due to regulatory concerns and investors turning shy on risky assets with interest rate rises looming around the world.

The biggest coin by market value fell by 5 per cent to a three-month low of $18,387, the biggest by market value.

The second largest criptocurrency dropped 3 per cent to a two-month low of $1,285 and is down more than 10 per cent in the last 24 hours. The majority of the smaller tokens were deeper in the red.

The Merge, which is the basis of the ether token, is an upgrade that will change the way transactions are processed and reduces energy use over the weekend.

The value of the token has fallen due to speculation last week from U.S. Securities and Exchange Commission Chairman Gary Gensler, who said the new structure could attract more regulation. The trades around the upgrade were unwound.

Matthew Dibb, COO of Singapore's Stack Funds, said it was speculation as to what might or might not happen.

Since the Merge, a lot of the hype has come out of the markets. He said that it was a sell-the- news type of event and that ether could test $950 in the coming months, given the nervous global backdrop.

It's not looking great right now, looking at the landscape in the right way, both fundamentally and technically. There is no immediate bullish catalyst that's going to prop up these markets and bring in a lot of new money and liquidity.