BKKT - Bitcoin slides over 4% as Binance latest target of regulatory crackdown

2023-03-27 14:16:10 ET

Bitcoin ( BTC-USD ) slid more than 4% on Monday as sentiment was dented by the ongoing regulatory crackdown in the industry, with the latest target being the biggest cryptocurrency exchange - Binance.

The exchange, along with its cofounder and CEO Changpeng "CZ" Zhao, were sued by the CFTC on allegations that it violated certain trading and derivatives rules. It alleged that Binance solicited U.S. users via unregistered crypto derivatives offerings, and directed its employees and customers to hide their true location by using VPNs to evade compliance controls.

Bitcoin ( BTC-USD ) dropped to $26.7K, its lowest on over a week, before paring losses to trade 3.1% lower at $26.99K as of 2.13 pm ET. Meanwhile, ether ( ETH-USD ) slipped 3.3% to $1.71K.

"Crypto participants are reconciled to the view that crypto regulation would now be driven by the judiciary, and the hopes of a Congress-led regulation seem bleak, at least in the short to medium term," said Bernstein analyst Gautam Chhugani.

He noted that the current crypto market is mostly internal capital, i.e. capital that has chosen to stay through the bear cycle. "So while new capital may not have entered the space, the capital that refuses to leave sets the price bottom."

Other exchanges also slid, including: Coinbase ( COIN ) -11% , Bakkt ( BKKT ) -6.7% , Robinhood ( HOOD ) -1% .

Miners that were in the red include: Cipher Mining ( CIFR ) -9.4% , Marathon Digital ( MARA ) -8.3% , Riot Platforms ( RIOT ) -6.4% , Bit Digital ( BTBT ) -6.1% .

More on Crypto Clampdown

G-7 to promote tougher crypto rules amid global banking drama

SEC warns of 'significant' risk of loss for crypto investors

Revisiting BITO, GBTC Before The Coming Bull Market In Bitcoin

Coinbase Wells Notice: What Is At 'Stake'

For further details see: