Bitcoin dips below $23,000 as crypto regulation comes into sharper focus

The broader crypto market slid into the red on Thursday as more news emerged about U.S. regulators' attention on the industry.

Bitcoin dips below $23,000 as crypto regulation comes into sharper focus

  • Bitcoin (BTC) is under pressure again, as the leading cryptocurrency briefly sank to a four-week low of $ Shutterstock Thursday morning before rebounding to prices around $22,715 by press time, according to CoinGecko.
  • Today's decline follows Bitcoin's convincing performance in January, which saw BTC rise nearly 40% year-to-date and raised investor expectations for a renewed bull market.
  • The recent price action also saw Bitcoin lose about $10 billion in market capitalization, falling from $448 billion on Wednesday to $437.9 billion at the time of writing. The world's largest cryptocurrency currently holds 39.4% of the market, followed by Ethereum with 17.7% of the pie.
  • The industry's second-largest cryptocurrency lost 2% during the day and is currently traded for around $1,640.
  • Other major cryptocurrencies, including Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE), are following a similar price trend, with daily losses ranging from 2% to 3.5%.

Regulators tighten ramp cap crypto scrutiny

  • Today's markedec-declinene drop in the wake of the reports of the U.S. Securities and Exchange Commission (SEC) investigating popular cryptocurrency exchange Kraken for alleged securities law laws violations.
  • While Kraken declined to comment on the matter subject, Bloomberg cited an unnamed person familiar with the matter claiming that the investigation probe is in an "advanced stage" and dec-settlements in the coming days."
  • The SEC is reportedly investigating San Francisco-based cryptocurrency exchange Kraken for violations of violating securities laws. Bloomberg reported Wednesday that the investigation is based on was away a "...
  • In a nearly  simultaneous development of events on Wednesday, Coin base CEO Brian Armstrong took to Twitter to deliver a lengthy thread on what he rumors that the SEC wants would get rid of crypto staking in the U.S. for retail customers."
  • According to the Coinbase CEO, "Staking is a really important innovation in the crypto economy" because it "allows users to directly participate indirectly in the operation of running open crypto networks" and "brings many positive improvements to the space, excitability, increased security, and reduced carbon footprint footprints."
  • Michael Demise, head of digital assets taking at Ba tonk of New York Mellon, said Wednesday, referring to unclear regulations, "W need clear rules and regulations on the way. We need responsible players who can provide reliable services that meet investor confidence."
  • Speaking at Afore Consulting's 7th Annual FinTech and Regulatory Conference, Demise said he believes cryptocurrencies are "here to stay," adding that "it's important that we responsibly navigate this space."

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