This year is full of twists and turns for the cryptocurrency industry. The situation has been like this in the crypto market for over a few weeks now as a result of several developments within the sector.
The uncertainty surrounding Multichain led to an increased sell-off of the MULTI toke, along with rumors revolving around the insolvency of Gate.io. Additionally, increased regulatory pressure from the SEC is not doing any good either.
The recent blow from the SEC to Binance has jolted the cryptocurrency market once again. The SEC accusing Binance of violating securities law is the main catalyst for the bloodbath in the crypto space.
Not too long after the news surfaced, Binance experienced massive sell-offs. The allegations against the exchange reignite fears and uncertainty over the extent of control of regulators over crypto exchanges.
The Cryptocurrency Market Cap Goes Down By 4% in a Day
A number of tokens in the cryptocurrency market were deeply affected by this development. The global crypto market cap has fallen to $1.09T. The largest cryptocurrency, Bitcoin (BTC) retraced back to the $25.5K mark after hovering around the $27K-$28K level for weeks. At the time of writing, Bitcoin (BTC) has declined by 4.84% in the previous 24 hours, pulling the trading price down to $25,752. The token has a market cap of just under $500 Billion.
Ethereum (ETH) is no exception either as the leading altcoin has plunged by 3.89% in the last 24 hours. The decline pulled the trading price of the token down $1,812, and its market cap currently stands at the $217 Billion mark. However, the list does not end here.
As long as other altcoins are concerned, they are facing extreme pressure from sell-offs. Cardano (ADA) has dropped by a whopping 7.31% over the course of the previous 24 hours, and the popular meme coin, DOGE, follows in similar footsteps as it has declined by a slightly higher 7.58%.
Furthermore, LUNC landed itself under the spotlight for surging by approximately 30% not too long ago, but the situation has changed as it has currently declined by a massive 15.75%. The Binance Coin (BNB) is down by 8.18%, Solana (SOL) by 7.67%, and Ripple (XRP) by 4.80%.
Currently, what may happen to Binance in the near future remains to be seen. Many believe that such a current situation will damage the cryptocurrency space for an undetermined amount of time. On the other hand, some believe that the market will not lose much unless major developments disrupt the operation of the exchange.
