Over the past few days, Bitcoin, Ethereum, and other coins have been plagued by price drops. It wasn’t by mistake – in fact, US regulators are to blame. The SEC is continuing its tirade against cryptocurrencies, and to make things worse, there are many rumors which suggest that there’s an anti-crypto alliance forming.
Bitcoin’s price has hit its lowest levels since March. Currently, it’s unable to break past the higher levels of $26,000, with a potential powder keg situation brewing. Stocks are soaring right now as everyone waits for the Fed to announce new interest rate hikes while the SEC sues Binance and Coinbase. It’s a bad time for the crypto market, yet somehow, Bitcoin’s price seems to linger in a decent position.
Considering the pressure the SEC has been putting on the biggest crypto exchanges to remove coins not registered as securities it makes sense that the price is down. Other exchanges and trading platforms are committed to working closely with regulators to keep afloat. eToro, for example, has announced it’ll remove support for Decentraland, Algorand, Dash, and Matic. Another trading app, Robinhood, will remove support for Solana, Matic, and Cardano. As per its statesperson, Robinhood constantly reviews its crypto offer and makes changes when necessary.
Due to SEC’s pressure, the platform’s trading volume fell over 40% in May. The removal of these coins is not a good sign. It shows that platforms are breaking under pressure from the SEC. Their combined value is nearly $25 billion, and investors are surely not happy about the decision.
The SEC’s legal battle against Coinbase and Binance has created a negative ripple effect where the price of other cryptos is dragged through the mud. Exchanges and trading platforms are halting sales of certain coins because they don’t want no part of the SEC’s legal actions. Not surprisingly, the 7-day price of the delisted coins has dropped significantly, and the looming macroeconomic decisions make things worse for Bitcoin’s price.
According to some reports, things are about to get worse. David Sacks, a prominent tech investor who’s close to Elon Musk, says that SEC chair Gary Gensler and Senator Elizabeth Warren are forming an alliance that threatens to destroy the US crypto market. The deal? Warren should make him Treasury Secretary if he destroys crypto. Gensler is obviously taking no prisoners judging by his latest actions.
Can Things Get Better?
To answer the question quickly, yes. No amount of pressure from any regulator will stop crypto. It’s a minor setback that may see Bitcoin’s price fall down further. But, how many times have we seen the crypto market staring in the face of adversity before? A few crypto winters didn’t kill the ecosystem, and while it may be halted in the USA, it will find market elsewhere.
With rampaging inflation and macroeconomic factors that surely aren’t great, Bitcoin’s price may need some time to recover. But, it most certainly will – it might just take longer. The crypto market is a Hydra – cut one head off, and dozens will appear in its place.