Bitcoin (BTC) Loses $10 Billion After SEC Chairman Intervention

Following the slowdown in the markets, critics of crypto assets are hounding against them. While investors suffer the pangs of the downturn, others find ways to profit from it. Indeed, bitcoin and other cryptocurrencies have experienced 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

After the cryptocurrency crisis a few months earlier, many crypto assets are still struggling to recover. After long months of falling, most cryptos have lost more than 50% of their value. While the sector is gradually recovering, not everyone sees things in the same light. If this is good news for investors, followers of the traditional financial system are not of the same opinion.

Indeed, bitcoin is noticeably the big loser in this story. Even if the small cryptos suffered the same effects, the BTC comes out the loser since its price fell by almost 70% during this period. Despite light recoveries, he struggled to stabilize. Fortunately, the price of the main cryptocurrency stabilized over the weekend. Although the price is stagnating, it could quickly start an uptrend if it hits its resistance barrier.

However, the statement by Gary Gensler, the chairman of the Securities Exchange and Commission (SEC), has a big bearing on the market capitalization of BTC. Indeed, the latter told CNBC that bitcoin is the only crypto asset he is willing to recognize as a commodity. To continue, he said that for now, there will be no bitcoin Spot ETF.

Eric Balchunas, an ETF analyst at Bloomberg has cited the chairman of the SEC. According to him, traditional stock markets are less risky than the crypto sector. Following this statement, the industry removed $10 billion from bitcoin’s market capitalization. According to data from CoinMarketCap, it therefore goes from 405 billion dollars to 394 billion dollars.

The SEC continues its anti-crypto fight

The media coverage of cryptocurrencies has placed them in the spotlight. Even if some only see the beneficial aspect of cryptos, others see the consequences they could bring. For several organizations, the volatility of crypto assets is one of the major annoyances.

Gary Gensler is currently using the recent fall in the crypto market which resulted in many losses. According to him, some digital asset exchanges could turn against their clients. He is therefore using the market situation to reaffirm his opposition to the development of crypto assets. Thus, failing to find a regulation on these assets, it can at least warn traders about the risks associated with the sector.

Recall that during this time, the SEC is still in court against Ripple. Highly publicized, it arouses the curiosity of many people who closely follow its development. With the uncertain course of this lawsuit, one would expect the SEC to be busy elsewhere. However, once again, she is attacking cryptocurrencies and setting her sights on bitcoin. An attention that leads to several inconveniences.

Cryptocurrencies are just recovering from the crisis period. As the lights gradually turn green, bitcoin critics are getting back in the saddle. If more and more investors are interested in crypto assets in general and bitcoin in particular, the SEC is also tightening its grip around them. Gary Gensler’s CNBC statement casts a chill on the flagship crypto. Because of this claim, BTC lost $10 billion in market capitalization.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!

Eddy Senga avatar

Eddy Senga

The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.

Leave a Comment