Global crypto market cap plunges below $1 trillion as regulatory concerns wipe out 2023 gains
The world of cryptocurrency is experiencing a turbulent phase as regulatory fears have rocked the market, leading to a significant loss in the overall industry valuation. Major digital assets, such as Bitcoin (BTC), are among the most affected, leading capital outflows.
Notably, at press time on February 13, the global cryptocurrency market had plunged below the $1 trillion capitalization to stand at $997.98 billion. In the past 24 hours, the sector’s market capitalization had peaked at $1.028 trillion, according to CoinMarketCap data.
It is worth noting in recent years, the $1 trillion market cap has been considered a critical psychological level for investors above the potential to lure institutional players into the space.
As it stands, market losses have been led by BTC, with the flagship cryptocurrency plunging below $22,000. In particular, recent market sentiment has invalidated Bitcoin’s push to regain $25,000.
Bitcoin price analysis
At press time, Bitcoin was trading at $21,698 with daily losses of around 0.7%. Notably, despite the losses, the asset is still up over 20% on the annual chart. Bitcoin’s market cap is $418.75 billion.
Other assets leading the market correction include Ethereum (ETH), which is down nearly 10% on the weekly chart; XRP, with a correction of 8% in the last seven days; and Cardano (ADA), with corrections of over 10% on the weekly chart.
SEC Attacks Hurt Crypto Momentum
In fact, the latest crypto market correction has emerged from the Securities Exchange Commission’s (SEC) renewed crackdown on the sector targeting betting activities. Along these lines, cryptocurrency exchange Kraken announced that it would discontinue its digital assets products in the United States and pay a $30 million settlement to the SEC over allegations that the service violated regulations.
Furthermore, the SEC plans to sue stablecoin issuer Paxos, alleging that Binance USD (BUSD) is an unregistered security. Amid the uncertainty, crypto trading expert and analyst Michaël van de Poppe suggested that Bitcoin and general market correction is not a major concern, linking it to SEC ‘FUD’ which has resulted in several investors exiting the market.
With concerns that inflation is rising, investors are increasingly worried about higher interest rates, putting riskier investments like Bitcoin under pressure. Therefore, there will be interest in this week’s upcoming inflation data for January.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
