Bitcointhe largest cryptocurrency by market value, fell around 5% to a three-month low of $18,387.
Ether, the second-largest cryptocurrency, fell 3% to a two-month low of $1,285 and is down more than 10% in the past 24 hours. Most of the other smaller chips were deeper in the red.
The Ethereum blockchainwhich underpins the ether token, received a major upgrade over the weekend called the merge which changes the way transactions are processed and reduces power consumption.
The token’s value fell amid some speculation that remarks last week by U.S. Securities and Exchange Commission Chairman Gary Gensler implied the new structure could attract additional regulation. The exchanges around the upgrade have also been resolved.
“It’s speculation about what might or might not happen,” Matthew Dibb, COO of Singapore crypto platform Stack Funds, said of the regulatory outlook.
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“A lot of the hype has come out of the markets since the merger,” he said. “It’s really an information sell-type event,” he added, given the jittery global backdrop, and said ether could test $950 in the coming months.
“Looking at the landscape right now, both fundamentally and technically, it doesn’t look great. There is no immediate bullish catalyst that we can see who is going to support these markets and bring a lot of fresh money and cash.”