Crypto market faces pressure from falling prices, regulatory clampdown, and contagion fears
The world of cryptocurrencies is under pressure due to falling token prices, fresh regulatory actions, and mounting fears of contagion.
Recent trends reveal that bitcoin’s trading behavior is aligning more with traditional stocks, with Citigroup strategists noting a struggle to maintain high trading volumes.
Last week marked a pivotal moment for the sector as the U.S. Securities and Exchange Commission (SEC) took legal actions against Binance and Coinbase for operating illegal exchanges.
The SEC also classified several smaller tokens as unregistered securities, causing market unease.
These developments could prompt institutional investors to tread carefully, potentially diminishing liquidity further and slowing down the market.
Currently, the collective market value of over 25,000 coins stands around US$1 trillion, down from an estimated US$3 trillion at the end of 2021.
Key developments include the SEC’s request to freeze Binance.
US’s assets, eToro’s decision to restrict U.S. customers from opening new positions in several cryptocurrencies, and the outflow of nearly US$172 million from global exchange-traded products tracking cryptocurrencies within the first six months of 2023.
Furthermore, cryptocurrency values fell as the Federal Reserve hinted at the resumption of its interest rate hikes.
Two South Korea-linked cryptocurrency lenders stopped withdrawals, and the world’s largest stablecoin, Tether’s USDT, veered from its dollar parity, suggesting a sell-off.
Texas and New Jersey regulators charged crypto trading platform Abra with securities fraud.
Meanwhile, BlackRock filed an application for a spot bitcoin ETF, causing a temporary rise in bitcoin’s price.
Lastly, French authorities launched an investigation into Binance’s alleged illegal digital asset services and severe acts of money laundering.
Live Market IntelligenceCrypto — Live Market Board
Rio Times · Live Market Intelligence
Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief