• Bitcoin (BTC) sank to a four-week low in the early hours of Thursday, slipping below its hovering $23,000 price range.
• Rumors have been circulating about ongoing crypto regulation investigations, with Bloomberg reporting that a top U.S. financial regulator is currently investigating crypto exchange Kraken over certain offerings to U.S. customers.
• Coinbase CEO Brian Armstrong also addressed rumors concerning the SEC wanting to get rid of crypto staking in the U.S., expressing his hope that this isn’t the case as it would be a terrible path for the U.S..
Bitcoin (BTC) Slips Below $23,000
In the early hours of Thursday, Bitcoin (BTC) the largest cryptocurrency by market cap, sank to a four-week low. The crypto asset slipped below its hovering $23,000 price range to as low as $22,408 before climbing back to its current price.
Regulators Pestering The Industry?
Bitcoin’s slump below its $23,000 range is due to the ongoing crypto regulation rumors circulating in the industry. On Wednesday, Bloomberg reported that a top U.S. financial regulator is currently investigating crypto exchange Kraken over a suggestion that it breaking security rules related to certain offerings to U.S. customers. Hours after that, Coinbase CEO Brian Armstrong voiced out via a five-tweet thread, rumors concerning the SEC wanting to get rid of crypto staking in the U.S for retail customers .
Brian Armstrong’s Take on Crypto Staking
Brian said: „I hope that’s not the case as I believe it would be a terrible path for the U.S if that was allowed to happen.“ He further expressed importance of staking saying: „staking is really important innovation in crypto; It allows users to participate directly in running open crypto networks and brings many positive improvements such as scalability , increased security and reduced carbon footprints.“
Bitcoin’s Bearish Movement
Bitcoin has always been vulnerable being influenced by what happens in industry; Its bearish movement today comes after lot of investors and traders seem convinced of an ongoing bull run that could take it back peak and beyond . In January , BTC price surged nearly 40% bringing it current crossing of 20K mark . Following slump below 23K region , Bitcoin has lost couple billion from market cap . Between Wednesday today , Bitcoin’s market cap has fallen from 442 billion 432 billion , losing roughly 10 billion market value .
It remains unclear whether Bitcoin will keep slumping or make a comeback soon but one thing we know for sure is that developments around cryptocurrency regulations are going be closely watched by everyone who participates cryptocurrency space