Bitcoin (BTC), once again, has come under pressure. On Thursday morning, the most popular cryptocurrency plunged to $22,408 at 4:08 AM. However, prices rebounded to around $22,715 by Friday press time, according to CoinGecko.
Today’s drop is due to Bitcoin’s remarkable performance in January. BTC has risen almost 40% since the start of the year. This raises investors’ expectations of a new bull run.
Bitcoin also lost about $10 billion in market cap, dropping to $437.9billion at the time of writing on Wednesday, up from $448billion earlier. The world’s most popular cryptocurrency currently controls 39.4%. Ethereum holds 17.7%.
Current trades at $1,640 indicate that the second-largest cryptocurrency traded in the industry has lost 2%.
Other major cryptos, such as Binance Coin (BNB), Cardano/ADA, and Dogecoin have a similar price trend. Their daily losses are between 2% and 3%.
Crypto-regulators intensify their scrutiny
Several reports from the Securities and Exchange Commission led to today’s market dip. It examines Kraken, a cryptocurrency exchange popular for alleged securities laws violations.
While Kraken declined comment, he cited an anonymous source familiar with the matter. He claimed that the probe is now at an “advanced level” and could lead “to a settlement in the coming days.”
Coinbase CEO Brian Armstrong recently took to Twitter to discuss “rumors that the SEC might want to get rid of cryptocurrency staking” in the U.S.
“I hope that this is not the situation as I believe it would be a terrible pathway for the U.S., if that were allowed to happen,” he said.
The Coinbase CEO said that “staking is a very significant innovation in crypto” because it allows users to directly participate in the running of open crypto networks and brings many positive improvements to crypto, such as increased security, scaling, and reduced carbon footprints.
Michael Demissie the Bank of New York Mellon head of digital assets said Wednesday, “we absolutely require clear regulation and rules for the road.” We need reliable, trustworthy services that can earn the trust of investors.
Demissie stated his conviction that cryptocurrency is “here and staying” at the 7th Annual FinTech and Regulation Conference of Afore Consulting, adding that “it’s crucial that we navigate this space in a responsible way.”
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
