Crypto Market Sell-Off

• Bitcoin has lost around 10% of its value since yesterday
• Bank woes are causing the crypto market to sell off
• Ethereum is being claimed as a security by the New York Attorney General

Bitcoin Price Drop

Bitcoin has dropped significantly in value, losing around 10% of its worth since yesterday. This coincides with banks going under or teetering on the brink of failure, such as Silvergate and Signature Bank. SVB Financial Group saw its shares fall more than 60%, which could put an important long-term driver of the economy at risk. VC-backed companies rely on this bank for loans and holding their operating cash, so a government bailout may be necessary if no private capital solution can be found.

Kucoin Under Fire

The New York attorney general has sued Kucoin for alleged illegal activities including the offering of securities and commodities. Furthermore, $1 billion worth of bitcoin was recovered from a dark web hack, and transferred to Coinbase and government-controlled wallets. The sale of these bitcoins will add even more downward price pressure to an already volatile crypto market. At time of writing, bitcoin is currently valued at $19,600 – potentially falling even further to the 61.8 Fibonacci level at $19,200. Sunday’s weekly close will be very significant in determining where bitcoin might go next.

Ethereum Security Claimed

Ethereum is not exempt from problems in the crypto sector either; it too is experiencing a downturn due to being claimed as a security by the New York attorney general in relation to the Kucoin lawsuit. The statement argued that ETH is just like LUNA and UST in terms of being a speculative asset that relies on third-party developers for profits for holders of ETH tokens.

Disclaimer

This article should only be used for informational purposes, not as legal, tax investment financial advice or any other kind advice related to cryptocurrencies