Bitcoin prices continued to fall for the first time since August over the past 24 hours, briefly dropping below $40,000. Despite recouping some losses, Bitcoin was still trading lower at $42,036.5, down 1.5%. Overall, Bitcoin is up 42% this year, but is still well below its record high of nearly $65,000.
The second-largest cryptocurrency, Ethereum, fell 5% to $2,853. The price of Cardano dropped 4% over the past 24 hours, while Dogecoin fell 2% to $0.20. The prices of tokens such as XRP, Solana, Uniswap, Stellar and Litecoin have also declined over the past 24 hours.
During a Tuesday discussion on cryptocurrencies, SEC Chair Gary Gensler said banks and other firms that offered private forms of money have failed in the past. In his remarks, Gensler reiterated that US securities laws give his agency broad authority to deal with digital tokens. In addition, he said Congress could help close some oversight gaps associated with digital tokens, including regulating crypto exchanges.
Meanwhile, the Pyth crypto-data network, which deals with cryptocurrency data, showed a 90% plunge in Bitcoin on Monday, a glitch that did not show up on any other platform. The cause is being investigated and a full report will be available soon, Pyth network informed in a tweet.
The crypto market continued to see inflows for a fifth consecutive week, according to data from digital asset manager CoinShares. Crypto inflows reached $41.6 million for the week ended Sept. 17, with bitcoin taking the lion’s share of the action with $15.3 million and ether products attracting $6.6 million.
Inflows into Bitcoin have been minimal over the last sixteen weeks because of negative investor sentiment, the report said. $4.2 billion was the total amount of bitcoin inflows during the course of this year.