Cryptocurrencies are experiencing a market downturn today, with investors spooked by news of a U.S. regulator-led lawsuit against KuCoin and the fallout from Silvergate Bank. This has led to a general sell-off of digital assets, with Bitcoin (BTC) and Ethereum (ETH) both dropping below $4,000 and $120, respectively.
The crypto market is down today after the fallout from Silvergate Bank’s demise, a U.S. regulator-led lawsuit against KuCoin exchange and hawkish comments from United States Federal Reserve chair Jerome Powell spooked investors.
Bitcoin hit a monthly low on March 9 at $20,207 and after the key $21,600 level was breached, traders are worried that a revisit of the bear market lows could occur.
Analysts are concerned that the bears are in control of Ether price, as it has reached a monthly low at $1,425. ETH tickers down $1,407 also contributed to this.
U.S. crackdown leads to increased crypto outflows
Crypto market crackdown spreads to KuCoin as New York Attorney General Letitia James announces lawsuit against major crypto exchange. Allegations include that Ether is a security trading on the exchange, which means KuCoin failed to register as a broker-dealer.
Recent enforcement action against Paxos and Binance, plus the recent SEC crackdown on centralized staking, have also prevented the development of sustainable bullish momentum across the market.