Bitcoin Plummets After SEC’s Crushing Blow: 6% Dip in Value
• On February 10, 2023, the cryptocurrency market experienced a dip as Bitcoin dropped from $23,000 to $21,600.
• The decline was largely due to news of crypto exchange giant Kraken agreeing to settle charges with the U.S. Securities and Exchange Commission (SEC) and shutter its U.S. cryptocurrency staking operations.
• Market analysts are divided on the future of Bitcoin due to comments by Coinbase’s CEO and the SEC’s stance on other crypto-staking services offered by exchanges and platforms.
Bitcoin Plummets After SEC’s Crushing Blow to Kraken
Impact of Kraken’s Settlement with the SEC on the Crypto Market
On February 10, 2023, the cryptocurrency market experienced a dip as Bitcoin dropped from $23,000 to trade at $21,600, a decrease of 6% in just 24 hours. The decline was largely due to news of crypto exchange giant Kraken agreeing to settle charges with the U.S. Securities and Exchange Commission (SEC) and shutter its U.S. cryptocurrency staking operations. Ether (ETH), the second-largest cryptocurrency, followed a similar trend recently trading at an 8% decrease reaching $1,520. The news from Kraken came just a day after Coinbase’s CEO tweeted about rumors of the SEC wanting to eliminate crypto staking in the U.S., leaving some market analysts divided on the future of Bitcoin.
Market Insights and Indicators
According to Mauricio Di Bartolomeo co-founder of Ledn – a crypto lending platform -the absence of short Bitcoin liquidations suggests there may be more sideways trading in the near term . Messari’s latest report cites movement of large amounts of Bitcoin from centralized exchanges to self-custodial wallets , growth in daily active addresses and transactions as potential indicators for a market bottom .The report also notes that Bitcoin has historically experienced resurgence in popularity after periods of doubt . The Fear & Greed metric has only returned back slightly showing signs that investor confidence is still present .
On The Flipside
Kraken agreed not confirming or denying allegations in SEC’s complaint but agreed upon ceasing its staking service for US customers . This could have long lasting implications for other exchanges offering similar services which could lead them into trouble if they do not abide by regulations set forth by US authorities .
The settlement between Kraken & SEC shows their stance towards other crypto staking services provided by exchanges & platforms while Coinbase’s CEO tweet further added fuel making it difficult for analysts predict future trend especially when large amounts are being moved away from centralized exchanges & job data along with monetary policy pose another threat towards BTC’s price value .