Cryptocurrency prices today: Bitcoin falls sharply after sudden spike in volatility, altcoins crash

Popular cryptocurrencies weakened sharply over the past 24 hours due to a sudden spike in volatility. Majority of the altcoins crashed due to the overall weakness in the cryptocurrency market. Check the latest prices and trends.

Cryptocurrency prices fell sharply on Monday after weakening over the weekend due to a sudden spike in volatility.

Most of the top virtual coins witnessed a significant decline over the past 24 hours. Bitcoin, the world’s largest cryptocurrency, fell sharply on Monday and was trading at $45,454.82 or 5.45 per cent lower than its price 24 hours ago at 1:00 pm.

Bitcoin’s market capitalisation fell to $855 billion and the 24-hour trading volume stood at $849 million.

Ether also fell sharply today as trading momentum fell and its value stood at $3,166, down nearly 8 per cent compared to its value 24 hours ago.

The market capitalisation also fell to $371 billion and the 24-hour trading volume stood at $815 million.

Most other altcoins such as XRP, Cardano, Polkadot, Stellar, Dogecoin, Chainlink, Uniswap and Litecoin crashed. It may be noted that the total cryptocurrency market capitalisation declined by more than 5 per cent.

Commenting on the weak momentum, Edul Patel, CEO and Co-founder of Mudrex, a global algorithm based crypto investment platform, said, “The cryptocurrency market appears to have begun the week on a highly volatile note.”

“Most of the top cryptos witnessed significant declines over the past 24 hours. Traded volumes went up by over 7 per cent, and the total market cap declined by more than 5 per cent,” he added.

“Long-term investors need not panic, as, after an intense rally which we saw a couple of weeks back, such volatility is only rational.”

House Democrats propose plan to close crypto tax loophole

On Sept. 13, the House Ways and Means Committee proposed legislation that would close a tax loophole for cryptocurrency investors by imposing “wash sale” rules on commodities, currencies and digital assets, according to a released outline.

Currently, investors can sell cryptocurrency for a loss and claim a tax benefit. Then, investors can immediately buy back the asset if it rebounds. So-called “wash sale” rules would prevent investors from buying the same asset back right away.

Subjecting cryptocurrency and other assets to this proposed change would raise $16.8 billion over a decade, according to estimates by the Joint Committee on Taxation.

Senators demand cryptocurrency regulation guidance from SEC

On Tuesday, Gary Gensler, chairman of the Securities and Exchange Commission, told the Senate Banking Committee that the SEC is working overtime to create a set of rules for cryptocurrency markets to protect investors.

“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading, or lending,” Gensler said in prepared remarks. “Frankly, at this time, it’s more like the Wild West or the old world of ‘buyer beware’ that existed before the securities laws were enacted.”

Some lawmakers also pressed Gensler about whether certain crypto assets, like stablecoins, meet the definition of a security, which has been an ongoing subject of concern and confusion for regulators and the crypto community.

Ray Dalio says if bitcoin is really successful, regulators will ‘kill it’

On Wednesday, Ray Dalio told CNBC that he believes that regulators would ultimately take control of bitcoin if the cryptocurrency is successful.

“I think at the end of the day if it’s really successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it,” Dalio told Andrew Ross Sorkin on CNBC’s “Squawk Box” at the SALT conference.

“You have El Salvador taking it on and you have India and China getting rid of it. And you have the United States talking about how to regulate it and it could still be controlled,” he said.

Still, Dalio disclosed that he has “a certain amount of money in bitcoin,” but noted that the allocation is smaller than his gold exposure.

“It’s an amazing accomplishment to have brought it from where that programming occurred to where it is through the test of time,” he said.