Following the slowdown in the markets, critics of crypto assets are struggling. While investors are suffering from the downturn, others are finding ways to make a profit. In fact, bitcoin and other cryptocurrencies are having an unprecedented dark period. As the market slowly recovers, a statement from the chairman of the SEC turns everything upside down.
Gary Gensler takes a toll on bitcoin (BTC) market capitalization.
Following the cryptocurrency crisis a few months earlier, many crypto assets are still struggling to recover. After months of falling, most cryptocurrencies have lost more than 50% of their value. While the sector is gradually recovering, not everyone sees things the same. If this is good news for investors, then fans of the traditional financial system are not of the same opinion.
In fact, bitcoin is the big loser in this particular story. Even if the small cryptocurrencies suffered the same effects, the BTC comes out the loser since its price fell by almost 70% during this period. Despite a light recovery, he was struggling to stabilize. Fortunately, the price of the cryptocurrency most stabilized over the weekend. While the price is stagnant, it could quickly start a promotion if it hits its resistance barrier.
However, the statement from Gary Gensler, chairman of the Securities and Exchange Commission (SEC), has a major impact on the market capitalization of BTC. In fact, the latter told CNBC that bitcoin is the only crypto asset it is willing to recognize as a commodity. To continue, he said so far, there will be no Bitcoin Spot ETF.
Eric Balchunas, ETF analyst at Bloomberg yes citation chairman of the SEC. According to him, traditional stock markets are less risky than the crypto sector. Following this statement, the industry reaped $ 10 billion in bitcoin market capitalization. According to data from CoinMarketCap, so it goes from $ 405 billion to $ 394 billion.
The SEC continues its anti-crypto fight
Media coverage of cryptocurrencies highlighted them. Even if some see only the beneficial aspect of cryptos, others see the consequences they can bring. For some organizations, the volatility of crypto assets is one of the major drawbacks.
Gary Gensler is exploiting the recent downturn in the crypto market which has resulted in many losses. According to him, some digital asset exchanges may go against their clients. It is therefore using the market situation to reaffirm its opposition to the development of crypto assets. Therefore, if regulation of these assets is not found, it can at least warn traders about the risks in the sector.
Recall that the SEC is still in court against Ripple during this time. It does a lot of publicity, it arouses the curiosity of many people who follow its development closely. With the uncertain course of this law, the SEC would be expected to be busy elsewhere. However, once again, she is attacking cryptocurrencies and fixing her sights on bitcoin. Attention leads to some inconveniences.
Crypto-currencies are just recovering from the crisis period. As the green lights gradually go, bitcoin critics are going back in the saddle. If more and more investors are interested in crypto assets in general and bitcoin in particular, the SEC is also stepping up its grip on them. CNBC’s Gary Gensler’s statement throws on the crypto flagship. As a result of this demand, BTC lost $ 10 billion in market capitalization.
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The world is changing and adaptation is the best weapon to survive in this turbulent universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and share an interesting field for me, there is nothing better than writing informative and reassuring articles at the same time.