Crypto Crash Imminent? U.S. WatchDog Actions Troubles the Market Before CPI Data Release
Crypto Crash in the Future? On Tuesday, the global crypto market printed red indicators ahead of the release of the Consumer Price Index (CPI). The cumulative market cap fell by more than 1% in the last day to remain above the crucial $1 trillion mark. The decline is due to increased scrutiny by the U.S Securities and Exchange Commission (SEC), which has been increasing its oversight of the digital industry.
Crypto Market to See More Volatility
Over the past seven days, the biggest crypto assets, Bitcoin (BTC), and Ethereum (ETH), prices have fallen by more than 5% (and 8% respectively). The recent decline in crypto market prices was triggered by New York’s regulatory agency’s notice to stop the issuance Binance USD (BUSD), which is a stablecoin.
The U.S. SEC’s recent crackdown on Paxos (the issuer of BUSD) has had a profound impact on Binance’s BNB token. According to data, BNB prices dropped by a staggering 7% over the past 24 hours. At press time, it trades at an average price $293.
The crypto market is bleeding due to the U.S. financial watchdog’s investigation into BUSD, the third-largest stablecoin. Investors are uncertain about the U.S. SEC’s next move and seem fearful. Recent events, such as the collapse of FTX, have shaken traders’ confidence. CPI Data Release: Crypto Market to Crash? Read Here…
Stablecoins in Trouble
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Probe around Paxos Trust Co. has raised concerns about the top two stablecoins Tether (USDT), and USD Coin (USDC). Data shows that approximately $342 million worth of BUSD was redeemed in the last 24 hours.
According to reports, the U.S. SEC will propose several rule changes on Wednesday. This could make it difficult for hedge funds to work alongside digital asset-related firms. Investors are still waiting for Tuesday’s US inflation data, which will direct the trend in interest rates and risk taking abilities.
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