VeChain crashed nearly double digits on Friday, and its price is headed below the $0.020 mark. VET is down 9.6% in the day’s trade after falling from $0.022 to $0.019 in the 24-hour day trade. The cryptocurrency has doubled in price since the start of January 2023, but it is shedding most of its gains at the moment.
VET started the year at $0.015 and its price could be headed back to square one due to the ongoing market crash.
Also Read: VeChain: Will VET Add Another ‘Zero’?
Why Is The Cryptocurrency Markets Crashing Today?
Bitcoin slipped below the $20,000 mark on Friday after the Biden administration proposed a 30% tax on cryptocurrency mining. The proposal aims to discourage mining activities as they consume a vast amount of electricity. The markets turned bearish, minutes after the proposal making Bitcoin and leading altcoins including VeChain bleed.
Read here to know what’s in the Biden administration’s proposal for cryptocurrency mining for a better and more in-depth understanding.
Also Read: VET To Reach $0.03 In The Next Leg?
In addition, the Silicon Valley bank is scrambling to stay afloat after facing an interest risk of $91 billion. SVB is also reassuring clients that things are not as bad as they seem. However, their stock faced a 60% decline that sent the overall stock and crypto markets tumbling.
You can read more details about how Silicon Valley bank is on the brink of collapse here.
If that wasn’t enough, SEC chair Gary Gensler gave out stinging statements about cryptocurrencies. He claimed early this month that “everything but Bitcoin” could be considered a security. FED chair Jerome Powell also joined the bandwagon, warning that Bitcoin could fall to $0 if the US launches a CBDC.
VeChain: How Low Could VET Go Next?
The cryptocurrency markets started the year on the front foot as Bitcoin and altcoins rallied until mid-February. The markets experienced a pullback in March, making VeChain shed most of the gains it generated this year. VET could reach $0.015 and get back to square one if the markets slip further during the weekend due to the above-mentioned negative factors.
Therefore, it is advised to remain cautious and not take an entry-level position in VET currently. The markets have more chances of heading south than north in the coming days.
Also Read: VeChain Price Prediction For March 2023
At press time, VeChain was trading at $0.020 and was down 8.7% in the 24-hour day trade. VET is also down 92.80% from its all-time high of $0.28, which it reached in April 2021.