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

After the markets slow down, crypto-asset critics are battling against them. While investors suffer the pain of a deflation, others are finding ways to profit from it. In fact, Bitcoin and other cryptocurrencies have experienced an unprecedented dark period. With the market slowly recovering, a statement from the Chairman of the Securities and Exchange Commission turns everything upside down.

Gary Gensler Influences Bitcoin (BTC) Market Cap

After the crypto crisis a few months ago, many crypto assets are still struggling to recover. After months of falling, most cryptocurrencies 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, adherents of the traditional financial system are not of the same opinion.

In fact, Bitcoin is remarkably the biggest loser in this story. Even if the smaller cryptocurrency suffers the same effects, BTC has been losing since its price has plunged nearly 70% during this period. Although the light recovered, he struggled to settle down. Fortunately, the price of the major cryptocurrency stabilized over the weekend. Although the price is in a slump, it may start an upward trend quickly if it reaches the resistance barrier.

However, the statement of Gary Gensler, Chairman of the Board of Directors of the Exchange and Commission (SEC), has a significant impact on the market capitalization of BTC. In fact, the latter told CNBC that bitcoin is the only crypto asset he would like to be recognized as a commodity. To continue, he said that for now, there will be no Bitcoin Spot ETF.

Eric Balchunas, ETF Analyst at Bloomberg to me Quote Chairman of the Supreme Education Council. According to him, the traditional stock market is less risky than the cryptocurrency sector. After this statement, the industry removed $10 billion from the market capitalization of Bitcoin. According to CoinMarketCap data, it rose from $405 billion to $394 billion.

The Securities and Exchange Commission continues its fight against cryptocurrency

Media coverage of cryptocurrency has put it in the spotlight. Even if some see only the beneficial side of cryptocurrencies, others see the consequences it can bring. For many institutions, the volatility of crypto assets is one of the main annoyances.

Gary Gensler is currently using the recent drop in the crypto market which has resulted in many losses. According to him, some digital asset exchanges could turn against their clients. So he is using the market situation to reaffirm his opposition to the development of crypto assets. Thus, in the event that no regulation is found on these assets, traders can at least be warned about the risks associated with this sector.

Remember that during this time, the Securities and Exchange Commission is still in court against Ripple. It enjoys great media coverage, and arouses the curiosity of many people who are closely following its development. With the uncertain trajectory of this lawsuit, one would expect the SEC to be busy elsewhere. However, once again, cryptocurrencies are attacking and setting their sights on Bitcoin. Attention that leads to many inconveniences.

Cryptocurrencies are just recovering from the crisis period. With the lights gradually turning green, bitcoin critics are back in the saddle. If more and more investors are interested in crypto assets in general and Bitcoin in particular, the SEC will tighten its grip on it. CNBC’s statement by Gary Gensler casts a cold spell on the major cryptocurrency. Because of this claim, BTC lost $10 billion in market capitalization.

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Eddie Senga's Avatar

Eddie 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 introduce you to a field that fascinates me, nothing is better than writing useful and relaxing articles at the same time.

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