The markets’ downturn has fueled the attacks on crypto assets from its detractors. Others find methods to profit from the crisis as investors feel its pain. Indeed, a historically dark moment has befallen bitcoin and other cryptocurrencies. A remark from the head of the SEC upends everything as the market begins to slowly recover.
Market capitalization for bitcoin (BTC) is negatively impacted by Gary Gensler.
Numerous cryptoassets are still working to recover from the cryptocurrency crisis that occurred a few months earlier. The majority of cryptocurrencies have lost more than 50% of their value after several months of decline. Even while the industry is slowly improving, not everyone shares the same perspective. If this is excellent news for investors, those who adhere to the conventional financial system may not agree.
In this case, bitcoin is undeniably the big loser. Even if the smaller cryptocurrencies experienced the same effects, Bitcoin loses out because its price dropped by about 70% during this time. He had slight improvements, but he had trouble stabilizing. Thankfully, the biggest cryptocurrency’s price steadied throughout the weekend. Despite the price’s stagnation, if it hits its resistance barrier, a rally may begin very fast.
The Securities Exchange and Commission (SEC) chairman, Gary Gensler, made a comment that has a significant impact on the market capitalization of BTC. In fact, the latter stated to CNBC that the only cryptocurrency asset he is willing to classify as a commodity is bitcoin. He continued by saying that there won’t be a bitcoin Spot ETF for the time being.
The SEC Chairman was cited by Eric Balchunas, an ETF analyst at Bloomberg. He contends that traditional stock markets are less dangerous than the cryptocurrency industry. The market capitalization of bitcoin was reduced by $10 billion as a result of this announcement. This results in a decrease from 405 billion dollars to 394 billion dollars, according to data from CoinMarketCap.
The SEC is still aware of anti-crypto assets.
The media’s attention to cryptocurrencies has brought them to public attention. Even if some people only perceive the positive aspects of cryptos, others can also see the potential negative effects. One of the biggest annoyances for many firms is the volatility of crypto currencies.
Gary Gensler is now making use of the recent decline in the cryptocurrency market that caused significant losses. He claimed that some digital asset exchanges might turn on their users. Therefore, he is utilizing the current state of the market to reiterate his opposition to the growth of crypto assets. In the event that there is no regulation on these assets, it can therefore at least inform traders of the sector’s hazards.
Remember that the SEC is still suing Ripple during this time. It has received a lot of attention and many people are curious about how it is developing. One would anticipate the SEC to be occupied elsewhere given the hazy nature of this lawsuit’s future. But this time, she’s targeting bitcoin and attacking cryptocurrencies in general. a focus that causes a number of annoyances.
Just now, cryptocurrencies are emerging from their recent crises. Bitcoin detractors are re-entering the fray as the lights begin to turn green. The SEC is increasing its control over cryptocurrencies in general and bitcoin in particular as investors become more and more interested in them. Gary Gensler’s CNBC speech has a negative impact on the leading cryptocurrency. This allegation caused BTC to lose $10 billion in market value.
