Bitcoin (BTC) is again under pressure as the leading cryptocurrency briefly dipped to a four-week low of $22,408 on Thursday morning before climbing back to prices around $22,715 at press time, according to CoinGecko.
Today’s drop comes after Bitcoin’s compelling performance in January, which saw BTC rise nearly 40% since the start of the year, raising investor expectations for a renewed bull run.
The latest price action also saw Bitcoin shed around $10 billion in market capitalization, falling to $437.9 billion at the time of writing from $448 billion on Wednesday. The world’s largest cryptocurrency currently accounts for 39.4% of the market, followed by Ethereum’s 17.7% share of the pie.
The industry’s second largest cryptocurrency lost 2% on the day and is currently trading around $1,640.
Other major cryptocurrencies, including Binance Coin (BNB), Cardano (ADA) and Dogecoin (DOGE) follow a similar price trend, with daily losses ranging between 2% and 3.5%.
Regulators Increase Crypto Scrutiny
Today’s market drop comes in the wake of reports from the US Securities and Exchange Commission (SEC) investigating popular cryptocurrency exchange Kraken for alleged violations of securities laws.
While Kraken declined to comment on the subject, Bloomberg cited an unnamed person familiar with the matter as claiming the investigation is at an “advanced stage” and “could lead to a settlement in the coming days.”
In an almost simultaneous development of events on Wednesday, Coinbase CEO Brian Armstrong took to Twitter delivering a long thread about what he called “rumors that the SEC wants to get rid of US retail crypto betting.”
“I hope that’s not the case, as I think it would be a terrible path for the United States if it were allowed to happen,” he said.
According to the Coinbase CEO, “staking is a very important innovation in crypto,” as it “allows users to participate directly in running open crypto networks” and “brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.”
Aiming for unclear regulations, Bank of New York Mellon’s head of digital assets, Michael Demissie, said Wednesday that “we absolutely need clear regulations and rules of the road. We need responsible players who can provide reliable services that live up to investor confidence. .”
Speaking at Afore Consulting’s 7th Annual FinTech and Regulatory Conference, Demissie said he is convinced that cryptocurrencies are “here to stay,” adding that “it’s important that we navigate this space responsibly. “
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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