- Cryptocurrency market stabilises after Tuesday’s “bloodbath.”
- But bitcoin, down 2%, and ethereum, down 5%, still suffering.
- Putin is proposing tighter regulation of the cryptocurrency space.
LONDON — Global cryptocurrency markets have stabilised slightly on Wednesday after a major sell-off, but the two biggest tokens are still losing ground.
All of the major cryptocurrencies suffered double-digit falls on Tuesday in what commentators described as a cryptocurrency “bloodbath.” The selloff was thought to be triggered by concerns about regulation in the Asian market.
Cryptomarkets have stabilised somewhat on Wednesday morning. Ripple, the third biggest cryptocurrency, is up 0.7% against the dollar to $1.15 at 7.45 a.m. GMT (2.45 a.m. ET). Bitcoin Cash, the fourth biggest cryptocurrency, is up 3.5% against the greenback to $1,819.39 at the same time.
But bitcoin and ethereum, the two biggest cryptocurrencies by market capitalisation, are still falling. Bitcoin is down 2% against the dollar at 7.50 a.m. GMT (2.50 a.m. ET), while ethereum is down 5% to $1,010.88.
The continued slump comes amid reports that Russia could be about to impose stricter regulations on the sector. Russian news service TASS reported last week that Putin said “legislative regulation will be definitely required in future” for cryptocurrencies.
“It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything. It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently,” Putin said, according to TASS. He compared cryptocurrencies to shared equity construction schemes. Putin’s comments were picked up by widely read cryptocurrency news website CoinDesk on Wednesday.