- New York State’s Attorney General Letitia James classified Ethereum (ETH) as a security.
- The fall of Silicon Valley Bank has implications for the whole cryptocurrency sector.
Bitcoin (BTC) fell roughly 8% in the last 24 hours before Friday morning’s employment figures, but it has since recovered marginally, rising back to just around $20,000. A steady unemployment rate of 3.4% was predicted, but instead, the rate increased to 3.6%.
Recent statistics indicate a frightening $2 trillion loss decline in the value of stocks and cryptocurrencies in only one day. Keyur Rohit, a crypto influencer and analyst, has seen something strange. This catastrophe is not the first time for the industry. Yet, the occurrence of such a series of occurrences throughout time causes one to ponder.
Sailing in the Windy Breeze
First, New York State’s Attorney General Letitia James classified Ethereum (ETH) as a security, a decision that may have far-reaching effects on the cryptocurrency market. Next, a lawsuit was brought against KuCoin, one of the main cryptocurrency exchanges, claiming that it manipulated the market.
The fall of Silicon Valley Bank has implications for the whole cryptocurrency sector. While the Silvergate debacle didn’t cause much of a stir outside the crypto community, it did lead to a precipitous drop in the share price of SVB Financial (SIVB), the parent company of tech-friendly lender Silicon Valley Bank.
There were large price swings after a flash collapse at another cryptocurrency exchange, Huobi. Also, Silvergate payments were already halted by Coinbase.
It’s possible that President Biden’s proposed tax on Bitcoin mining will have a major effect on the industry’s profitability. In addition, the SEC has been focusing on the industry, classifying everything in it as security except Bitcoin.
It has been claimed that insolvent Voyager, a prominent cryptocurrency trading platform, is selling up its assets to balance the books. This may all seem bleak, but keep in mind that the cryptocurrency market has seen its share of ups and downs.
Although one can call it the contagion effect of FTX fall. It’s hard to believe that this series of occurrences is just a coincidence, despite the fact that it may make you think so. However, the industry will recover from this downturn eventually.