The biggest crypto currency recently dropped below $30k a day after retrieving its perch above this mark and dropped to $29,045

Bitcoin (BTC) stayed around $29,300 on Wednesday, 3 per cent lower during the past 24 hours, hours after a huge sell order on Binance and U.K. hot inflation figures sent the price down.

The biggest crypto currency in terms of market cap recently dropped below $30k a day after retrieving its perch above this psychologically crucially mark and dropped as low as $29,045 at one time, as per CoinDesk data.

The drop also caught traders who were speculating on a rise off guard since most of bitcoin liquidated positions were long, as per data from Coinglass.

Ether (ETH) followed a similar pattern, declining below $2k on Wednesday for the first time in nearly a week. The second-biggest crypto currency in terms of market value was recently trading at nearly $1,981, more than 4 per cent lower from Tuesday.

Most leading cryptos were in the red on Wednesday, including several decentralized finance tokens. Decentralized finance exchange Uniswap’s UNI and lending platform Aave’s AAVE dipped 6 per cent and 7 per cent, respectively, to trade at nearly $5.90 and $74.85. Maker’s MKR tumbled by 5 per cent to stay at nearly $729.31.

Decentralized finance exchange volumes had been soaring amid rising concerns about their centralized equivalents, Joshua Frank, co-founder and Chief Executive Officer of digital asset information platform The Tie, stated to CoinDesk.

I think it is likely that we see this trend continue until we get clarity on the Binance regulatory situation, Frank stated, even though he said that decentralized finance accounts for less than 5 per cent of the overall crypto market cap.

In the meantime, rising regulatory investigation continued with the Securities and Exchange Commission (SEC) resuming a proposal from last year that would target decentralized finance exchanges for regulation.

Regulatory clampdowns against decentralized finance, concerns over security with decentralized finance hacks taking place consistently, and nervousness around who the counterparties really are on decentralized finance platforms are probably going to continue to hold up real institutional adoption, he stated.