Crypto Crash: Bitcoin fell below 6%, Ethereum down 10%

Early Monday morning, Investing.com tweeted some sobering news for the crypto community: Bitcoin had fallen below $19,000 to $18,802.1, marking another drop from its "threshold psychological" of $20,000.

And Bitcoin was not alone in its losses.

Ethereum's native token, Ether, fell even further: posting a drop of just over 10% and trading at $1,303.42.

As the Fed continues its efforts to tame inflation by raising interest rates, investors across the board have pulled back, and crypto is no exception. As the economy remains uncertain, individuals are avoiding risky assets.

Additionally, the long-awaited "merger" of Ethereum was completed last week, making it a proof-of-stake blockchain instead of a proof-of-work blockchain.

What does this mean? Essentially, proof-of-work is done through mining, while proof-of-stake is done by existing owners putting their coins at risk (or at stake) to validate transactions in the blockchain. The biggest advantage for The Merge is that it's better for the environment: it uses much less energy than proof-of-work transactions.

Related: Will Ethereum 'merge' emerge victorious?

However, there is a caveat. Along with news from The Merge, comments made by Securities and Exchange Commission Chairman Gary Gensler to the Wall Street Journal suggest that currencies allowing holders to validate coins through stakes would classify them as a security, which would mean that they must be subject to SEC regulation. This is a reality that many crypto investors are wary of, as the nature of currency is rooted outside of government regulations.

Related: 'We Are The First Group To Lose': Black Americans Are Hit Hard By The Crypto Crash

It is unclear when – or if – the crypto will rebound above its psychological threshold of $20,000, but as of 10:24 a.m. Monday, Bitcoin had already surpassed its threat of $18,802 and is trading around $19,210.

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