Bitcoin traded below $ 42,000 early Wednesday morning. This follows a day when most cryptocurrencies traded lower as bond yields rose, which also affected equities.
Bitcoin has fallen by more than 8% month-to-date and has fallen more than 37% from its highest in November.
Investors have been pulling money out of cryptocurrency funds for the fifth week in a row, reflecting the bearish sentiment in the market as bitcoin, according to Coindesk, suffered one of its worst starts ever in a year.
A top bank chief said this week that regulators need to provide more clarity on the traffic rules for cryptocurrencies and other digital assets.
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"We hope for more clarity on digital assets," Emily Portney, CFO of Bank of New (BNY) York Mellon Corp, told Reuters in an interview.
"Honestly, it's a little confusing about who's actually regulating digital assets and especially crypto ... and of course exactly what you can or can't do," Portney said.
The comments highlight the frustration among banking industry leaders as President Biden's regulators have taken a cautious approach to digital assets.
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Banks want to enter the industry, but before launching products, they want clearer rules.
BNY Mellon announced in February that it was developing a custodian and management platform for digital assets.
In other cryptocurrency news, the UK cracked down on "misleading" advertising for cryptocurrencies, according to Reuters.
These ads are reportedly targeted at retail consumers with poor knowledge of the risks, according to the Treasury Department.
The growing interest in cryptocurrencies has led to an increase in advertising, which has given warnings from the Bank of England that investors could lose all their money.
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The Treasury said around 2.3 million people in the UK now own a cryptocurrency, but research suggests that understanding of the sector is declining.
Advertising for cryptocurrencies will be brought within the framework of existing legislation on financial campaigns, the ministry said.