Cryptocurrency market loses $120 billion in 24 hours. How crazy is that? Is it just another red day for the whole market or a sign of something bigger going on?

Neil Wilson, a senior market analyst with ETX Capital, said to Business Insider “The wheels are coming off the bitcoin bandwagon.

“The regulatory crunch appears closer than ever and sooner or later this market could be headed back down to earth. Selling pressure at the moment is intense as there has been nothing but bad news for bitcoin bulls of late.”

More concerns have emerged about the sector this week as Facebook banned cryptocurrency adverts and US regulators began investigating Tether, a cryptocurrency that some fear has been used to inflate the value of bitcoin.

India’s finance minister also said this week that the Indian government “does not consider cryptocurrencies legal tender or coin and will take all measures toeliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

It is quite clear why this is happening. Market sell off has put the whole market upside down and the same keeps happening, but I guess that is understandable as the crypto market is still quite new and unpredictable. Despite the crash and the slow recovery process, most industry players feel there is no need to worry because the cryptocurrency market capitalisation remains fairly stable.