As the SEC Increases Pressure on Crypto, Bitcoin's 2023 Bounce is Fizzling.
By CoinUnited
A crypto crackdown in the US and concerns that higher-for-longer interest rates would drain investor enthusiasm for speculative assets have slowed Bitcoin's new year's return.
A barometer of the top 100 digital assets is down 5%, while the largest token is down 6% over the past three days, the worst three-day fall since December. At 6:25 a.m. Friday in London, Bitcoin was trading near $21,850.
Kraken, a cryptocurrency exchange, announced on Thursday that it will cease offering digital asset staking products in the United States as part of a $30 million settlement with the Securities and Exchange Commission. The event brought to light the growing regulatory distrust of the crypto industry, which is still reeling from the fallout from the FTX group's demise.
According to Cici Lu, head of blockchain advisory firm Venn Link Partners, "Regulators have been caught with their trousers down on FTX, and the community concerns that the regulatory pendulum may swing the other way forcefully."
Additionally, she said that "wild conjecture" suggests the crypto industry may have trouble gaining access to US financial institutions.
Beliefs in a higher peak in interest rates are solidifying in response to inflation worries, putting more pressure on riskier investments like cryptocurrency.
Tony Sycamore, a market analyst at IG Australia Pty., suggested that Bitcoin's next test may be if it can hold above its 200-day moving average, which is near $20,000. Year-to-date, the token is up 32% from its low point in December 2017.
All crypto-related assets were impacted by the Kraken and SEC events. Kraken's main competitor, Coinbase Global Inc., had its stock price drop by more than 14%, the largest in over six months due to fears about the safety of its staking products.
Staking is the practice of locking up currencies in order to facilitate the ordering of transactions on different blockchains, such as Ethereum, in exchange for incentives. To diversify their revenue streams, cryptocurrency exchanges like Coinbase and Kraken have entered the staking market.
There has been a recent uptick in the value of coins that are connected to decentralized staking platforms like Lido and Rocket Pool. Because they frequently operate independently on complicated software code with no single organization in charge, these apps are thought to be more difficult for regulators to pin down.
According to CoinGecko statistics, the value of a basket of twelve of these currencies, known as liquid staking tokens, has increased by 9 percent in the previous 24 hours to $4.7 billion, defying the general crypto market dip. Among the top 12, Rocket Pool saw the biggest growth (by 15%).
Price action in "liquid staking protocols implies a high likelihood of market share shift to decentralized alternatives," according to Matthew Sigel, head of digital-assets research at fund manager VanEck. This is despite the fact that the SEC's actions may slow the pace of crypto-staking adoption in the US.
Click CRYP for the latest prices on the cryptocurrency market, and TOP CRYPTO for the latest headlines.
Kraken, a cryptocurrency exchange, announced on Thursday that it will cease offering digital asset staking products in the United States as part of a $30 million settlement with the Securities and Exchange Commission. The event brought to light the growing regulatory distrust of the crypto industry, which is still reeling from the fallout from the FTX group's demise.
According to Cici Lu, head of blockchain advisory firm Venn Link Partners, "Regulators have been caught with their trousers down on FTX, and the community concerns that the regulatory pendulum may swing the other way forcefully."
Additionally, she said that "wild conjecture" suggests the crypto industry may have trouble gaining access to US financial institutions.
Beliefs in a higher peak in interest rates are solidifying in response to inflation worries, putting more pressure on riskier investments like cryptocurrency.
Tony Sycamore, a market analyst at IG Australia Pty., suggested that Bitcoin's next test may be if it can hold above its 200-day moving average, which is near $20,000. Year-to-date, the token is up 32% from its low point in December 2017.
All crypto-related assets were impacted by the Kraken and SEC events. Kraken's main competitor, Coinbase Global Inc., had its stock price drop by more than 14%, the largest in over six months due to fears about the safety of its staking products.
Staking is the practice of locking up currencies in order to facilitate the ordering of transactions on different blockchains, such as Ethereum, in exchange for incentives. To diversify their revenue streams, cryptocurrency exchanges like Coinbase and Kraken have entered the staking market.
There has been a recent uptick in the value of coins that are connected to decentralized staking platforms like Lido and Rocket Pool. Because they frequently operate independently on complicated software code, with no single organization in charge, these apps are seen as more difficult for regulators to pin down.
According to CoinGecko statistics, the value of a basket of twelve of these currencies, known as liquid staking tokens, has increased by 9 percent in the previous 24 hours to $4.7 billion, defying the general crypto market dip. Among the top 12, Rocket Pool saw the biggest growth (by 15%).
Price action in "liquid staking protocols implies a high likelihood of market share shift to decentralized alternatives," according to Matthew Sigel, head of digital-assets research at fund manager VanEck. This is despite the fact that the SEC's actions may slow the pace of crypto-staking adoption in the US.
Use CRYP for information on the cryptocurrency market and TOP CRYPTO for the latest developments in the world of cryptocurrencies.
A barometer of the top 100 digital assets is down 5%, while the largest token is down 6% over the past three days, the worst three-day fall since December. At 6:25 a.m. Friday in London, Bitcoin was trading near $21,850.
Kraken, a cryptocurrency exchange, announced on Thursday that it will cease offering digital asset staking products in the United States as part of a $30 million settlement with the Securities and Exchange Commission. The event brought to light the growing regulatory distrust of the crypto industry, which is still reeling from the fallout from the FTX group's demise.
According to Cici Lu, head of blockchain advisory firm Venn Link Partners, "Regulators have been caught with their trousers down on FTX, and the community concerns that the regulatory pendulum may swing the other way forcefully."
Additionally, she said that "wild conjecture" suggests the crypto industry may have trouble gaining access to US financial institutions.
Beliefs in a higher peak in interest rates are solidifying in response to inflation worries, putting more pressure on riskier investments like cryptocurrency.
Tony Sycamore, a market analyst at IG Australia Pty., suggested that Bitcoin's next test may be if it can hold above its 200-day moving average, which is near $20,000. Year-to-date, the token is up 32% from its low point in December 2017.
All crypto-related assets were impacted by the Kraken and SEC events. Kraken's main competitor, Coinbase Global Inc., had its stock price drop by more than 14%, the largest in over six months due to fears about the safety of its staking products.
Staking is the practice of locking up currencies in order to facilitate the ordering of transactions on different blockchains, such as Ethereum, in exchange for incentives. To diversify their revenue streams, cryptocurrency exchanges like Coinbase and Kraken have entered the staking market.
There has been a recent uptick in the value of coins that are connected to decentralized staking platforms like Lido and Rocket Pool. Because they frequently operate independently on complicated software code with no single organization in charge, these apps are thought to be more difficult for regulators to pin down.
According to CoinGecko statistics, the value of a basket of twelve of these currencies, known as liquid staking tokens, has increased by 9 percent in the previous 24 hours to $4.7 billion, defying the general crypto market dip. Among the top 12, Rocket Pool saw the biggest growth (by 15%).
Price action in "liquid staking protocols implies a high likelihood of market share shift to decentralized alternatives," according to Matthew Sigel, head of digital-assets research at fund manager VanEck. This is despite the fact that the SEC's actions may slow the pace of crypto-staking adoption in the US.
Click CRYP for the latest prices on the cryptocurrency market, and TOP CRYPTO for the latest headlines.
Kraken, a cryptocurrency exchange, announced on Thursday that it will cease offering digital asset staking products in the United States as part of a $30 million settlement with the Securities and Exchange Commission. The event brought to light the growing regulatory distrust of the crypto industry, which is still reeling from the fallout from the FTX group's demise.
According to Cici Lu, head of blockchain advisory firm Venn Link Partners, "Regulators have been caught with their trousers down on FTX, and the community concerns that the regulatory pendulum may swing the other way forcefully."
Additionally, she said that "wild conjecture" suggests the crypto industry may have trouble gaining access to US financial institutions.
Beliefs in a higher peak in interest rates are solidifying in response to inflation worries, putting more pressure on riskier investments like cryptocurrency.
Tony Sycamore, a market analyst at IG Australia Pty., suggested that Bitcoin's next test may be if it can hold above its 200-day moving average, which is near $20,000. Year-to-date, the token is up 32% from its low point in December 2017.
All crypto-related assets were impacted by the Kraken and SEC events. Kraken's main competitor, Coinbase Global Inc., had its stock price drop by more than 14%, the largest in over six months due to fears about the safety of its staking products.
Staking is the practice of locking up currencies in order to facilitate the ordering of transactions on different blockchains, such as Ethereum, in exchange for incentives. To diversify their revenue streams, cryptocurrency exchanges like Coinbase and Kraken have entered the staking market.
There has been a recent uptick in the value of coins that are connected to decentralized staking platforms like Lido and Rocket Pool. Because they frequently operate independently on complicated software code, with no single organization in charge, these apps are seen as more difficult for regulators to pin down.
According to CoinGecko statistics, the value of a basket of twelve of these currencies, known as liquid staking tokens, has increased by 9 percent in the previous 24 hours to $4.7 billion, defying the general crypto market dip. Among the top 12, Rocket Pool saw the biggest growth (by 15%).
Price action in "liquid staking protocols implies a high likelihood of market share shift to decentralized alternatives," according to Matthew Sigel, head of digital-assets research at fund manager VanEck. This is despite the fact that the SEC's actions may slow the pace of crypto-staking adoption in the US.
Use CRYP for information on the cryptocurrency market and TOP CRYPTO for the latest developments in the world of cryptocurrencies.