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Yep, I think since the market is already weak, news like this has more of an affect than it might have had say 2 weeks ago.

Capitalization in crypto markets os not that big.

A small ammount of trades (around 50 BTC maybe) is enough to create big movements in prices.

Thats why the volatility is so big.

Bigger markets like Forex need billions in trade to make big movements in prices.