As a direct consequence of the recent regulatory crackdown on Coinbase and Binance, the cryptocurrency market, dominated by Bitcoin and Ethereum prices, has lost some of its upward impetus in the short term.
A Wells warning has already been delivered to Coinbase Global by the SEC in relation to the company’s staking & token listing operations. Particularly noteworthy is the SEC’s contention that crypto-staking programs constitute unregistered securities in their many forms.
In addition, the authorities in charge of regulating finance in the United States assert that all digital assets other than Bitcoin are unregistered securities.
Gretchen Lowe, who serves as the Principal Deputy Director and Chief Counsel for the CFTC’s Enforcement Division, stated (1) that “today’s action taken conveys that the CFTC and its Enforcement Division will continue pursuing those cryptocurrency exchange platforms & persons who flout & continually try to bypass CFTC legal standards.”
Analysts of the cryptocurrency market believe that the recent fees imposed on centralized exchanges, such as Coinbase and Binance, will drive the prices of Bitcoin and Ethereum to new lows, possibly retesting the ATL from the previous year.
Prices of Bitcoin and Ethereum
Since the first of the year, the market for cryptocurrencies has been on an upward trend that has been consistently gaining momentum. Yet, market analysts predict that a bearish trend may emerge in the cryptocurrency market during the next couple of quarters. Some market analysts believe that Bitcoin and the rest of the digital asset market will hit a new bottom before recovering to its all-time high, and this anxiety is being fueled by the ongoing government scrutiny of cryptocurrencies.
Despite this, a different group of cryptocurrency analysts is confident that the industry will maintain its optimistic sentiment, which is being fed by the ongoing crisis in the global banking sector.
Traders of cryptocurrencies should brace themselves for higher volatility regardless of the outcome.
The most recent cryptocurrency market data was provided by Coinmarketcap. This data indicated that the price of Bitcoin was exchanged for about $26912, which was approximately 0.6 percent down during the last 24 hours.
Today, the price of Ethereum (ETH), the 2nd biggest digital asset in terms of market capitalization, is at $1,740; this represents an increase of approximately 3 percent. BNB suffered the greatest loss, falling almost 5.27 percent in the previous twenty-four hours to a price that was around $310 on Tuesday.
In light of the recent report that the White House presented to Congress, in which it described cryptocurrency as highly volatile and unstable for investment purposes, the regulatory crackdown was highly anticipated.
In addition, participants in the cryptocurrency business were aware that rules are an essential component of mainstream adoption, which has the potential to fuel the next bull movement.
It is possible that the United States’ position on the cryptocurrency business will be adopted by a significant number of other countries and territories around the world given that the country controls around 25 percent of global market activity.