The cryptocurrency market continues to experience a downward trend as both Bitcoin (BTC) and Ethereum (ETH) face significant losses. Over the past 24 hours, Bitcoin has dropped by more than 3%, threatening to lose the $28,000 mark, while Ethereum has fallen around 2% and is close to abandoning the $1,900 level. These declines come after a prolonged rally since early January, where Bitcoin’s value increased by more than 80%. However, experts are now warning that the recovery may be running out of steam.

Craig Erlam, a senior analyst at Oanda, highlights that Bitcoin has abandoned the support level it found around $29,000 at the beginning of the month, indicating a potential weakness in the market. “After such a prolonged rally, the recovery may be running on fumes,” Erlam explained, while predicting further falls for Bitcoin. This sentiment is echoed by Michael van de Poppe, a cryptos analyst and founder of the investment firm Eight, who notes that the largest cryptocurrency on the market is currently showing weakness after losing important support levels. He identifies the final crucial level at $27,600, and if not recovered quickly, he predicts a further drop to $26,200.

Regulatory uncertainty in the United States is also believed to be a factor in the recent decline of the cryptocurrency market. The passage of MiCA (Markets in Crypto Assets) has raised concerns among investors, as it introduces new regulations for digital assets in the European Union. Mark Connors, the head of research at Canadian cryptoasset manager 3iQ, believes that the recent volatility in the market is partly due to regulatory uncertainty in the U.S., with companies seeking alternatives outside of the country. He points to Coinbase’s decision to get licensed in Bermuda to launch an exchange as early as next week, as an example of U.S. digital asset companies voting with their feet. Connors further indicates that the regulatory and price volatility this week has resulted in the U.S. economy being the clear loser.

The regulatory landscape for cryptocurrencies has been evolving rapidly, and this uncertainty has impacted investor sentiment and market performance. Investors are closely monitoring developments in regulations, as they can have a significant impact on the value and stability of cryptocurrencies. The recent passage of MiCA in the EU and the ongoing discussions around regulatory measures in the U.S. have created a sense of uncertainty, leading to a decline in the cryptocurrency market.

As the market continues to face challenges, experts emphasize the importance of understanding the risks and conducting thorough research before investing in cryptocurrencies. The volatile nature of the market, coupled with regulatory uncertainties, can result in sudden price fluctuations and significant losses for investors. It is crucial to carefully consider one’s investment strategy and risk tolerance before entering the cryptocurrency market.

In conclusion, the cryptocurrency market has seen a decline as Bitcoin and Ethereum continue to fall in value. Regulatory uncertainty in the United States, along with the loss of support levels, has contributed to the recent downturn. Experts are predicting further falls as the market grapples with regulatory challenges, including the recent passage of MiCA in the EU.