Bitcoin There has been a continuous decline for some time. It was trading near $23,000 at the start of the day and has been in a steady decline since then. It was trading at $21,800 during the US session. Despite this, now is not the time to panic and sell your crypto holdings.
Unless there is a major change in market regulations or government intervention, prices have the potential to move back over time. As long as you have some bitcoin left in your portfolio when the price drops again, you should be fine.
Kraken Under the Microscope: SEC Investigates Crypto Exchange for Possible Violations
One reason behind a strong selling trend in the crypto market is a report SEC is investigating Kraken exchange, According to reports, the Security Exchange Commission will be investigating crypto-to-crypto exchange Kraken for violations of securities laws.
Bloomberg There has been speculation about a possible resolution for the past few days, suggesting it may be coming soon.
About Kraken
Kraken is a digital crypto-asset trading platform that allows customers to buy and sell bitcoin, ethereum, and dogecoin. The exchange, the fourth largest by volume according to CoinGecko data, has been accused of wrongdoing by federal authorities.
In November, Kraken agreed to pay $362,158.70 to the US Treasury Department’s Office of Foreign Assets Control for apparent violations of sanctions against Iran. Coins or tokens that have been labeled as securities by the SEC.
In January, the SEC charged two of the largest exchanges by trading volume – Genesis and Gemini. These charges were for offering unregistered securities.
Gary Gensler, chairman of the Securities and Exchange Commission, believes that many cryptocurrencies—but not bitcoin—are unregistered securities. Securities are investment instruments that raise capital through the public and private markets.
The number of crypto-related enforcement actions has increased significantly in recent years. This can be explained by the fact that the body is trying to regulate the space to ensure the safety and financial well being of the people.
According to Gensler, the cryptocurrency industry is “largely non-compliant,” despite the fact that there are already clear regulations in place to protect consumers. However, more needs to be done to ensure investor protection. Digital asset exchanges are under closer scrutiny from US regulators following the collapse of mega-company FTX in December 2017.
It is being said that the market is uncertain and investors are staying away from the crypto market.
SEC crypto-staking action against Kraken sends Coinbase shares lower
Coinbase shares closed down more than 14%. The company’s CEO, Brian Armstrong, has expressed his concern over rumors that the Securities and Exchange Commission is considering new enforcement action.
Many centralized exchanges, including Coinbase, offer customers the option of holding their digital assets without any leverage. Crypto staking occurs when investors choose to lock their assets with a blockchain validator, which verifies proof of accurate transactions on the blockchain.
For each token frozen for this process, investors can receive 5-20% more tokens from validators in return. Armstrong tweeted about a “terrible path” that would be followed if the SEC classified ether as a security.
The cryptocurrency market is unpredictable, volatile and highly dependent on sentiment. In the present state of the market, investors are reluctant to invest due to increased regulation and uncertain regulation. The current SEC investigation on Kraken News is keeping investors away from the crypto market for now.
bitcoin price
the current Bitcoin The price is $21,905, and the 24-hour trading volume is $31 Billion. Bitcoin has lost about 4.5% in the last 24 hours. With a live market cap of $422 billion, CoinMarketCap currently holds the first position.
On the technical front, the BTC/USD trade is extremely bearish. It is currently trading at $21,900 and recently completed 61.8% Fibonacci retracement at this level; This means that there is a good chance for the price to drop towards $20,000 in the near term. Resistance for bitcoin is expected near the $22,300 or $22,775 average.
Major technical indicators such as Relative Strength Index and Moving Average Convergence Divergence are both pointing towards a bearish market. Strong selling pressure is present as both the RSI and the MACD have reached the 25 level and are producing histograms below zero. Furthermore, a bearish engulfing candle is a signal that investors are strongly bearish.
If bitcoin breaks below $21,800, we expect the next support near $21,400. A close to the support level is expected to keep bitcoin price down.
bitcoin options
Cryptocurrencies and related ICOs are generating a lot of buzz all over the world. Cryptonews Industry Talk analyzes the top 15 cryptocurrencies to watch in 2023 to help guide your investment decisions.
If you are looking for an investment opportunity with a high profit potential, there are other options to explore.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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