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These factors have triggered a widespread crypto sell-off

The bullish sentiment in the crypto market from the beginning of the week returned on Nov.4 after the Chairman of United States Federal Reserve (Fed) Jerome Powell confirmed that the central bank will soon start to taper monetary policy and buy bonds.

In addition, the US Treasury Department released a report on stablecoins on Nov. 1, essentially urging Congress to regulate the industry.

Both of these moves seem to have triggered a series of price drops in the cryptocurrency market, with both Bitcoin and Ether under pressure at the moment.

BTC price action dropped quickly to $60,400 on Nov.3 and remains in a downtrend today as BTC is struggling to hold $61,000.

BTC/USDT 1-hour chart. Source: TradingView

Ether has also fallen slightly lower on the day after setting a new record high of $4,664 on Nov.3. It is currently trading at $4,476, marking a 3.8% drop from ATH.

ETH/USDT 1-hour chart. Source: TradingView

According to analyst ‘Rekt Capital’, Ether needs to close the week above the previous all-time high of $4,460 to keep its momentum going.

ETH made a new ETH this week. All ETH needs to do to continue this positive momentum is Weekly Close above it previous ATH (blue). This way, ETH would be able to flip its old ATH into support in an effort to springboard into Price Discovery again.”

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Source: Twitter

The BTC and Ether pullback hit the altcoin market hard and pushed most of the tokens in the top 200 into the red.

Some of the biggest falling tokens are projects that have seen a boom in recent weeks, including Shiba Inu (SHIB) down 17.22% and OriginTrail (TRAC) down 38% after skyrocketing to new ETH due to being listed on Coinbase.

However, not all is negative. There are a few coins that have gone against the broader market’s downtrend like the VLX of the AI-powered decentralized proof-of-stake protocol Velas that was up 30.4% on the day, while Chromia (CHR) increase by 26.47% and Amp gained 20.53%.

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