The crypto markets have been going slow since the beginning of 2022. With the market crash coming in May, the biggest crypto assets saw a huge slide in their value as the total crypto market cap went below $1 trillion. Following the layoffs from prominent organizations like Coinbase, Vault, and the halting of withdrawal services from Celsius, one of the biggest crypto lending firms, caused certain market sentiments that led investors to sell their volatile assets.
Bitcoin and Ethereum saw a few good weeks in July when the biggest crypto assets in the crypto ecosystem touched $23k and $1500 mark respectively. However, owing to the FOMC meeting happening this week and the biggest American companies who are yet to release their Q2 corporate statement, along with Tesla announcing their selling of 75% of their Bitcoin reserves have come together to affect the recovering price of BTC.
The emerging value of Bitcoin dropped to $21k after the news of one of the major crypto companies of the United States, Coinbase, came out.
$21,000 is critical for BTC bulls!
As reported by CoinTelegraph, data released by TradingView and CoinTelegraph Market Pro showed ‘a swift reversion to lower levels for BTC/USD as reports emerged of fresh legal problems for Coinbase over securities trading. The U.S. Securities and Exchange Commission, Bloomberg originally reported, was looking into whether the exchange had allowed users to trade unregistered securities. Part of a wider battle between the U.S. crypto industry and regulators over compliance, the move appeared to frighten the market, coming amid parallel allegations that a former executive conducted insider trading.’
Ironic the peak euphoric events of the Bull Market were Tesla buying #Bitcoin and Coinbase IPO’ing on the Stock Exchange
Now in the last week Tesla has sold and Coinbase is under investigation by the SEC
— Matthew Hyland (@MatthewHyland_) July 26, 2022
With so many events taking place in the world economy and the global financial system, Bitcoin’s value has come down to defending its $21k levels. For the part, COinbase has been standing its ground against the U.S. regulatory committee to be outdated in its approach to digital assets. In a dedicated blog released by Coinbase, they have added,
“ The consequence is that the United States is falling behind in digital asset innovation. Most of the digital assets traded today have the characteristics of commodities, and in many instances, were specifically designed to avoid the securities laws. In other words, as the crypto market develops, it is deliberately steering clear of the securities market — one of the principal financial markets in the United States. At Coinbase, we believe that digital asset innovation offers a number of profound, market-enhancing benefits — like real time settlement, the ability to trade safely without needing to go through costly intermediaries, and a transparent record of all transactions. But the full weight of those benefits will not come to pass if they are excluded from a market as big and impactful as the securities market.”
Coinbase claimed that SEC did not take the following steps while looking further into the crypto space, “ While the SEC has refused to develop new rules for digital asset securities, several governments and other organizations around the world are well on their way to new, workable crypto rules. The list is significant, and includes the European Union, United Kingdom, Singapore, Japan, Hong Kong, Australia, and Brazil. Action taken last month by the EU on their Markets in Crypto Assets (MiCA) regulation, for example, demonstrates the world’s largest economy — made up of 27 different countries — putting in place a clear, comprehensive set of rules for crypto.
We believe the SEC should follow the lead of these jurisdictions by helping to develop a robust and vibrant crypto securities market, with all of the excellent protections that investors have come to expect from American financial markets. That is why we filed our petition with the SEC that requests such a rulemaking to take place.”
Following the Coinbase news and its effect on Bitcoin’s value, experts have been sensing a similar mood within the altcoin sector. With Ethereum dropping almost 15% in value in two days. However, at the time of writing, ETH has gained 1.6% in value. The effects of all the global events are yet to be seen to bring to a final conclusion.
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