It’s lunchtime again, so we take a look at the live Bitcoin price and the prices of the top 25 crypto. We analyze the causes of the sharp price declines. We also present updates on Ethereum (ETH) and Crypto.comCoin (CRO).
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price and prices top 25 crypto drop sharply
At the time of writing, the live Bitcoin price is quoting EUR 35,451.93 ($40,340.07). This is 6.46% lower than yesterday and also lower than during our crypto lunch the day before yesterday.
The prices of the top 25 crypto are also dropping significantly. Apart from some stable coins we only see red numbers. The biggest price drop is currently for Wrapped Bitcoin (WBTC), which is losing 7.05%. On the site of Tradeincrypto.com you can analyze live crypto prices 24 hours a day, including the whole weekend.
Why are Bitcoin and crypto prices falling? Fingers point to Russia and SEC
According to experts, the explanation for the sharp price declines must be sought primarily in 2 factors. On the one hand, the crypto market is also struggling with investors’ growing uncertainty about the situation regarding Russia and Ukraine.
Another cause is located in America. There, the hunting season for crypto seems to have opened.
SEC opens crypto hunting season, DeFi, stable coins and more in sights
A settlement with a DeFi platform, an unclear crypto law and more regulations to come, the SEC is focusing full on the crypto industry. We list the issues.
Settlement SEC and BlockFi shocks DeFi industry
DeFi platform BlockFi got into a fight with the SEC over their BlockFi Interest Account (BIA). This account allows people to save in crypto. Unlike bank interest rates, the savings rate on their crypto account is a whopping 9%. Because the accounts are held in crypto, they thought they would fall outside the security rules applicable to banks. According to the SEC, this is a misconception and an investigation followed.
Meanwhile, the outcome is known. Settlement has occurred and BlockFi will pay $100 million in fines. Since the SEC still does not have specific guidance to answer the question of when cryptos fall under securities, the uncertainty among investors is high.
Do all DeFi solutions now fall under securities as well? If so, the costs of registering as a security and meeting the associated conditions are far too high for start-ups. Reactions among DeFi developers are mixed. They do expect the market to be more cautious while waiting for clarity. Whether that will come in the short term remains to be seen.
SEC goes for even more crypto regulation after unclear law
The SEC has been announcing for some time that it will (want to) come up with a framework of regulation for crypto. So far, there is no such framework. However, an obscure bill did come out that does not mention the terms “Bitcoin” and “crypto” but seems to apply to the crypto industry.
Meanwhile, rumor has it that Joe Biden is going to order further investigation into the crypto industry next week. The order will advance research into the extent to which “crypto” can undermine America’s financial stability. It also examines what it would take to introduce a digital Dollar and the potential environmental impacts of such an introduction. According to insiders, the study is going to take about 1.5 years in total, and with that, the uncertainty among investors also continues.
In addition, as a result of the falling Bitcoin, we are of course seeing the well-known crypto snowball effect occur.
Crypto.comCoin (CRO) is going to change its name to Cronos
The Cronos token is the utility token of Cronos EV Chain and Crypto.org Chain. As the coin becomes more and more successful, it appears that the name is causing confusion. Too many people associate the name with the exchange platform Crypto.com. Since they want to emphasize that the coin is decentralized they wanted to get rid of that association. The name change has already been implemented. In any case, this action does not lead to positivity among investors. The live Cronos (CRO) price is currently $0.455742 and thus 3.54% lower than yesterday.
Morgan Stanley is tough on the risks of Ethereum (ETH)
Morgan Stanley published a report to teach its investors something about Ethereum (ETH). The report echoes heavy criticism of the crypto currency. For example, Morgan Stanley warns of:
A lack of decentralization (39% of the stock is owned by the top 100 Ethereum investors)
Volatility
Scaling issues
transaction costs
Loss of market share due to upcoming regulation
You can read the entire report here. For now, investors don’t seem to be reacting too shocked. The live Ethereum (ETH) price is at $2,879.30. With a loss of 5.91% from yesterday, this is in line with the sentiment we see for the top 25 crypto.
Staying up to date with the latest price trends?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”
