Bitcoin and other cryptos are falling. It’s not all because of Binance.

“The decline was triggered by the CFTC’s surprise lawsuit against Binance,” said Alex Kuptsikevich, an analyst at broker FxPro. “Investors should ask themselves again: Is my money safe? If banks are a risk, crypto exchanges are an even bigger risk.”

In fact, the Commodity Futures Trading Commission on Tuesday sued Binance and its co-founder and CEO, Changpeng Zhao, alleging they violated rules that require futures and other derivatives to be traded on regulated platforms.

But that may not be the only factor driving prices down in the short term. MicroStrategy (ticker: MSTR), a software company led by high-profile Bitcoin bull Michael Saylor that owns significant amounts of digital assets, revealed on Monday that it had bought a new tranche of Bitcoin-6455 coins for about $150 million.

“A negative market reaction following MicroStrategy acquisition announcements is typical, with Bitcoin averaging -2.2% on MicroStrategy announcement days. The average 7-day return is more balanced at -0.2%,” wrote analysts at market research group K33 Research in a note.

The changing outlook around interest rates means that Bitcoin continues to be sensitive to macroeconomic forces and movements in the

Dow Jones Industrial Average

and

S&P 500,

since higher rates dampen demand for risk-sensitive assets. While traders will likely have to wait until Friday for the next big macro catalyst, economic data covering trade, inventories and consumer confidence will be released on Tuesday, with public comments from a Federal Reserve official also on the docket.

Beyond Bitcoin,

Ether

—the second largest crypto lost 1.5% to $1,730. Smaller cryptos or altcoins were also lower, with

Cardano

down 1% and

Polygon

fall 2.5%. BNB, the native token of the Binance exchange, fell 5%. Memecoins were also weaker, with

Dogecoin

and

Shiba Inu

each departure 1.5%.

Write to Jack Denton at [email protected]