Bitcoin falls below $28k amid caution over Coinbase’s SEC notice
Bitcoin (BTC-USD) fell below the $28,000 mark, suggesting investors are cautious and awaiting the outcome of the SEC’s notice to Coinbase.
Bitcoin was down 1.4% at $27,864 on Monday.
Ethereum (ETH-USD) fell 2.6% to $1,756.
The global cryptocurrency market capitalization was $1.2 billion, down 0.1%, according to Coingecko data.
Coinbase Receives SEC Wells Notice
Last Wednesday, the US Securities and Exchange Commission (SEC) issued Coinbase Global Inc with a Wells Notice – a formal statement that the regulator intends to recommend an enforcement action.
Shares of Coinbase ( COIN ) fell nearly 13% to $67.83.
If the SEC officially classifies cryptocurrencies as securities, it will affect trading volume on cryptocurrency exchanges such as Coinbase by trading volume.
Read more: Crypto live prices
All cryptocurrencies, except bitcoin, must register with the SEC and be forced to adopt technology systems to make their order books compliant with the audit.
They will also face strict order execution rules to prevent market manipulation.
Exchanges such as Coinbase could face large fines from the SEC for listing cryptocurrencies that the regulator would consider unregistered securities.
SEC Chairman Gary Gensler said he considers all cryptocurrency values except bitcoin.
Crypto market reaction to interest rate hike in the US Federal Reserve
The cryptocurrency market remained mostly in the green after the Federal Reserve decided against a less hawkish rate hike at last Wednesday’s Federal Open Market Committee (FOMC) meeting.
The Fed’s 0.25% increase takes the benchmark federal funds rate to a target range of between 4.75% – 5%.
“The committee will closely monitor incoming information and consider the implications for monetary policy,” the FOMC’s post-meeting statement said.
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“The Committee expects that some additional tightening may be appropriate to achieve a monetary policy that is sufficiently restrictive to return inflation to 2% over time.”
Federal Reserve Chairman Jerome Powell said: “The process of getting inflation back to 2% has a long way to go and is likely to be bumpy.”
Cryptocurrencies have historically responded positively to lower interest rate environments, which can encourage more liquidity in global markets.
See: Web3: Venture capital still flows into crypto, claims head of Outlier Ventures | Crypto Mile
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