- The crypto market flipped to red.
- SEC is investigating US-based crypto exchange Kraken.
The crypto market once again flipped from green to red amid US financial regulators actions in the industry. The leading cryptocurrencies, Bitcoin and Ethereum, lost their growth streak at the end of the weekend. The largest crypto asset BTC has bounced back from its recent loss but remains under pressure to maintain its value of $22,800 over the past few days.
According to CoinMarketCap data at the end of January, BTC reached $23,000, up from $16,000 at the start of the year. BTC experienced a 10% growth rate in its value in 2023. For the past seven days, Bitcoin’s price has been swinging between $21,500 to $22,800. On February 10, the BTC market opened at $21,862, down by 3.32% in the past 24 hours.
Crypto analysts believe that Bitcoin is far from turning bullish. A crypto analyst Smart Contractor alerted BTC’s short-term trajectory. “F**k it, I am out and chilling in stables for now. Was a good start to the month but I reckon BTC sweeps $22,000 and f**k knows what that will do to alts.”
On the other hand, Ethereum, the second largest crypto by market cap, opened at $1,550, down by 4.93% in the past 24 hours. News of upcoming upgrades on Ethereum might push the price up soon.
Why Crypto prices dropped sharply despite a good start this year
Crypto has become a hot topic in the fourth industrial revolution, with heated debates and interest among financial institutions, regulators and central banks.
The unanticipated price drop of crypto assets is due to the sudden announcement of an investigation on Kraken, a US-based leading cryptocurrency exchange, by the US regulator Securities and Exchange Commission (SEC) for breaching the nation’s security laws. In the wake of SEC’s charges against Kraken, Coinbase CEO tweeted, “I hope that’s not the case as I believe it would be a terrible path for the US if that was allowed to happen.”
Per Forbes, the Biden administration reportedly moved to ‘quietly’ ban BTC, ETH and other crypto assets, which has been described as ‘Operation Choke Point 2.0’. Earlier in 2013 the US government initiated efforts to remove the unwanted sectors from banking services. Last month the Biden administration alerted the crypto users that “it would be a grave mistake” to access links between…[+] Bitcoin, Ethereum and cryptocurrencies to deepen ties with the broader financial system.”
In a recent press conference, Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC) said, “The crypto market was shaken to its core last year, on several different fronts. In my view the bankruptcies, failures, and runs only validate that action is needed. The ecosystem is vast, will not vanish, and needs comprehensive legislation.”
“There is a new Congress, and I will continue to engage and provide technical assistance to draft legislation, as requested,” he added.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other devices. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/02/11/amid-regulatory-hostility-reminder-of-old-anti-crypto-tactics/