Bitcoin and Ether, two of the largest cryptocurrencies, have experienced a drop in their value for the third consecutive day. As of Friday, Bitcoin was down by 3% over the last 24 hours, trading at around $28,000. Ether, the second-largest cryptocurrency by market value, has also lost 8% of its value since last Friday. This comes after a mostly down week for risky assets like cryptocurrencies. However, on Thursday, the European Parliament passed comprehensive crypto legislation, becoming the first major jurisdiction to do so, which could be a positive development for the crypto industry.
On Wednesday, $100 million in bitcoin positions were liquidated on Binance, which has raised concerns among investors. The U.S. Securities and Exchange Commission (SEC) is now advising brokers and investment advisers to use heightened scrutiny when making crypto recommendations to ensure the risky products are in the best interests of their clients. A Thursday staff bulletin specifically mentioned crypto, continuing the agency’s recent focus on the sector after having largely ignored digital assets in its rules and guidance until last year.
Coinbase, a U.S. crypto exchange, has obtained a license to offer its services in Bermuda as it seeks to expand internationally. The company announced in a blog post on Wednesday that it has received a Class F license from the Bermuda Monetary Authority, which allows it to operate as a digital-asset exchange in that territory. The news comes two days after CEO Brian Armstrong indicated that the U.S.-based exchange would consider moving out of the U.S. if clear crypto regulation isn’t enacted.
According to a chart by pseudonymous analyst @OnchainDataNerd, more than 34,000 ETH ($64.8 million) were transferred to Binance early Friday. The large investor who moved these coins will earn a profit of $6 million if they choose to liquidate their holdings. However, this potential liquidation might add to bearish pressures on ether.
The crypto market has been volatile in recent weeks, with Bitcoin and other cryptocurrencies experiencing significant drops in value. Experts believe that this volatility is due to a combination of factors, including regulatory concerns, environmental issues, and market manipulation. Despite this, many investors remain bullish on the long-term prospects of cryptocurrencies, citing their potential to revolutionize the financial industry.
As the crypto industry continues to grow, it is likely that we will see more regulation and scrutiny from governments and financial institutions. This could lead to increased stability and legitimacy for cryptocurrencies, but it may also limit their potential for growth and innovation. Only time will tell how the crypto market will evolve in the coming years, but one thing is certain: it is a fascinating and rapidly changing industry that is worth keeping an eye on.
