Bitcoin corrects heavily by 10% in just the last 24-hour duration as the overall crypto markets hit a month low.
After some strong words coming from the U.S Securities and Exchange Commission (SEC) earlier this week, Bitcoin has slipped by more than $2500 since Tuesday, March 6th. According to the data available on CoinMarketCap, Bitcoin which was trading at a high of $11,686 on Tuesday has slipped below $9,000 levels in the past 24-hour duration and is currently trading at $9016.14.
The SEC had announced earlier this week that any digital currency platform which is trading or holding the digital assets needs to get registered with the federal agency in order to continue its operations and business further. The SEC during the announcement also said that many online trading platforms appear to investors as being SEC-regulated and registered but the fact is that they are not.
The SEC in its statement said that “If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
It further went to add that “The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as ‘exchanges’, which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”
While commenting on the statement of SEC, the spokeswoman at CNBC said: “Bitcoin falling 10 percent after the SEC put out this warning which does suggest that US regulators are now more focused on cryptocurrency exchanges, specifically ones that are unregulated.”
Earlier today, the price of the Bitcoin slipped well below $9000 hitting it 20-day low to $8520.58after which it managed to recover another $500 price points and is currently trading at just partially above $9,000. However, currently, it’s not just Bitcoin but rather the correction seems to have hit the entire cryptomarket which today registered a new month-low of $350 billion market cap which is nearly 47 percent fall from its month high of $518 billion.
Popular crypto-trading nations from around the world are taking some strict regulatory measures to make sure that the investor’s funds remain protected. After the recent hack of Japanese exchange ‘Coincheck’ which reported $500 million of investor’s funds being stolen, the Japan financial watchdog – The Financial Service Agency (FSA) is seen performing on-site checks to make sure that the exchanges are following all the anti-money laundering rules and taking necessary security measures at their end.
The FSA has recently slapped notices to seven crypto exchanges to submit reports of their implementation of rules by the 22nd of March this month. The agency has also suspended two exchanges – Bit Station and FSHO on the charges of misuse of investor’s funds.
While on the other hand, some industrial experts attribute this fall in the price of Bitcoin to the massive sell-off made by the Mt. Gox trustee in order to repay the creditors. The trustee -Nobuaki Kobayashi – is said to have dumped $400 million worth BTC over the last six months and the disclosure states that he still has another $1.7billion worth BTC which he might sell anytime in the future. Experts believe that this has caused a lot of fear in the investor community which is willing to shed of its holdings.
However, justifying his stand the holdings, Kobayashi said: “As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above. I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing o the sale.”