[ad_1]
The worsening macroeconomic climate and the collapse of industry giants such as FTX and Terra have weighed on the price of Bitcoin this year.
STR | Nurphoto via Getty Images
Cryptocurrency prices fell on Monday after the US Securities and Exchange Commission accused Binance, the world’s largest crypto exchange, of violating securities laws.
bitcoin It fell 5.5% to $25,662.50, its lowest level since March, as measured by Coin.
ether It decreased by 5.1%, to $1,807.79. Binance coina token used to pay transaction and trading fees on the Binance exchange, fell 9.5%.
The declines came after the SEC alleged that Binance and its co-founder, Changpeng Zhao, misappropriated billions of dollars of investor funds for and violated their securities laws. The complaint follows a similar lawsuit against Binance from the CFTC earlier this year.
“Binance is the largest cryptocurrency exchange by trading volume, so it is not surprising that the market responded the way it did to the news,” Sam Callahan, principal analyst at bitcoin services firm Swan Bitcoin, told CNBC. “Any regulatory action against a major cryptocurrency player creates uncertainty and leads to increased market volatility in the short term.”
“However, such volatility is often temporary, and prices may recover once the market digests the news,” he added. “In the long term, this can be seen as a healthy evolution of the ecosystem as bad actors are eliminated, and capital flows from cryptocurrencies with high regulatory risks to bitcoin.”
The lawsuit is the latest development in this year’s crackdown on the crypto industry by US regulators. Since January, the SEC has charged Kraken, Genesis, and Gemini Trust with offering unregistered securities to investors and warned Coinbase about possible securities charges.
Bitcoin capped last week its worst trading month since November, ending May down 7.9% after trading in a narrow range between $26,000 and $28,000. Technical analysts see $25,200 as the key level to pay attention to on the downside for bitcoin.
[ad_2]
