In the past 24-hours, the trading value of the largest crypto in the crypto-verse has slumped by more than $1,000. The price of Bitcoin was hovering at more than $23,000 but its value experienced a downtrend.
As the trading price of Bitcoin slumped, its value fell below the $22,000 level. The decline was recorded as the Securities and Exchange Commission went against the staking of cryptocurrencies.
US SEC has gone against Crypto Staking
The securities regulator has made it clear that it is unhappy about the adoption of staking services by cryptocurrency exchanges.
It does not approve of the cryptocurrency exchanges offering staking services for cryptocurrencies, especially, for assets that are not registered.
The trading price of other major cryptocurrencies is also facing major downtrends in recent trading sessions.
The data shows that the trading prices for DOT, SOL, OKB, DOGE, and ADA have all recorded huge dips in their prices in the past 24-hours. Their trading prices have also moved in the downward direction.
Their values have dipped more than 5% in a matter of a single day. This has the entire crypto industry worried as to how low the prices of the assets may fall in near future.
It was the beginning of the month when the US Feds announced a hike in the interest rate. This resulted in the trading price of BTC going skyrocketing.
The value of the asset reportedly went to a high of $24,300 after the interest rate hike. The price chart shows that the trading price of BTC hit a five-month high.
It was quite a significant jump that the trading had made given the recent developments in the global economy.
After a few days, the trading price of BTC ended up falling to a low of $23,000. Once the price fell to a low of $23,000, it spent an entire week trying to move to a higher level.
Unfortunately, the trading volumes did not support the asset and the trading price of the asset could not make it back to $24,000.
Even a few days back, the trading price of BTC was hovering in the $23,000 range. It was expected that the trading price of the asset may surge to higher levels.
This is when the US SEC came up with another more aggressive move against the staking services for cryptocurrencies.
The regulator needed a target to make its point and get the staking services banned for cryptocurrencies.
Given the amount of time Kraken had spent in the industry and it had been offering staking services since 2019, it was the perfect target.
Therefore, the regulator went against the exchange and it was able to force the exchange to settle, paying $30 million in the process. It even forced the exchange to dismiss the staking services it had been offering.
The exchange has confirmed that it has suspended the staking services. This is a clear victory for the securities regulator.
It has given the regulator the confidence to push forward and bring more cryptocurrency firms under the microscope.
Downfall of Bitcoin
As the regulator took an action, the trading price of Bitcoin suffered a huge dip. Its price lost $1,500 and it fell to a low of $21,600. Even in the past 24-hours, the value of Bitcoin has plummeted by 3%.
Following the recent dip, the valuation of Bitcoin has dropped to $420 billion. As for dominance, it is now at 41.4%.
Downtrend of Altcoins
As for the altcoins, their prices have also recorded reds in the latest trading sessions. This is all because of the actions taken by the US SEC against the crypto staking services.
The value of Ethereum has recorded a 5% dip and the values of Tron, Litecoin, Polygon, Ripple, and Binance Coin have suffered 4% declines.
As for Shiba Inu, Polkadot, Solana, OKB, Dogecoin, and Cardano, their values have dipped by 8%.