• Bitcoin has lost around 10% of its value since yesterday due to bank woes, including the failure of Silvergate and a 60% drop in shares for SVB Financial Group.
• The New York attorney general is filing against Kucoin claiming that Ethereum is a security.
• The US government has transferred $1 billion in bitcoin recovered from a dark web hack, adding to downward price pressure on Bitcoin.
Crypto Sector Sell Off
The crypto market has been experiencing an ongoing sell off recently, with vitally important banks going under or teetering on the brink. Silvergate has gone down, and SVB Financial Group saw its shares fall by more than 60%, as nearly 50% of all healthcare and tech VC startups in the U.S. rely on them for loans and holding their operating cash. Meanwhile, Kucoin is the latest exchange to be targeted by authorities as the New York attorney general sues them for allegedly offering securities and commodities illegally.
Adding to the downward pressure on crypto prices, $1 billion worth of bitcoin recovered from a dark web hack was recently transferred by the US government to Coinbase and other government-controlled wallets. This sell-off could have significant implications for future BTC pricing activity.
ETH Security Status
The NY attorney general’s filing against Kucoin also claims that ETH is a security just like LUNA and UST speculative assets which rely on third-party developers providing profit to holders of ETH tokens. If this claim is accepted it could have serious repercussions throughout the crypto sector as well as wider financial markets.
Bitcoin Price Performance
At time of writing Bitcoin had dropped to $19,600 with its 61.8 Fibonacci level at $19,200 not yet reached due to high selling activity levels in the market.. Sunday’s weekly close will be very important for understanding where BTC might go next given these uncertain times in both traditional finance sectors and cryptocurrencies alike .
This article is provided for informational purposes onlyand should not be used as legal, tax, investment or financial advice .