Bitcoin drops below $69,000

This downturn continued a decline that started in October of last year, just after bitcoin hit its highest-ever price

Bitcoin, the world’s most popular cryptocurrency, dropped below $69,000 on Sunday, its lowest level since the month began.

It has declined 20% since the U.S/Israeli attack on Iran began February 28. One month later, the war shows little sign of abating.

This downturn continued a decline that started in October of last year, just after bitcoin hit its highest-ever price.

A report on the trend by Bloomberg News argued that the decline has shown the limits of the belief that bitcoin offers a safe haven for investors in turbulent times.

Peter Tchir, head of macro strategy at Academy Securities, told Bloomberg there are other factors at work. For example, bitcoin is being caught up in a larger stock selloff. Higher energy prices could also be a factor, as this makes it more expensive to mine crypto.

Much of the recent gains to me seem to have been bets on legislation, which is probably getting harder to pass — D.C. is focused on war, and lately, the new legislation hasn’t led to the buying mania from newbies that the crypto community seems to expect, Tchir said. It does seem like risk is increasing again.

Industry observers had hoped that new joint guidance from the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) on applying securities laws to crypto tokens might help boost prices.

After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws, SEC Chairman Paul S. Atkins said in a news release last week. This is what regulatory agencies are supposed to do: draw clear lines in clear terms.