SEC DECISION TO SUSPEND CRYPTO SECURITIES LEADS TO A SELL-OFF
A decline in the crypto market continued today led by a major drop in the price of Ethereum. The total market capitalization of cryptocurrencies tracked by CoinMarketCap declined to $196 billion, which is $640 billion lower than the peak in January this year.
The ETH/USD and BTC/USD pairs are trading at 189 and 6222 respectively. The former is the lowest it has fallen since October last year while the latter is the lowest it has been since August this year.
The declines this week were triggered by the SEC’s decision to suspend the trading of two crypto related securities, Bitcoin Tracker One and Ether Tracker One, citing investor confusion. This was a blow to the cryptocurrencies market which has seen more bad news in recent months.
Today’s decline also came after the founder of Ethereum issued a rare warning to traders. In a statement on Friday, Vitalik Buterin said that the era of huge returns in the cryptocurrency was gone.
The decline ignored the positive news coming from Citigroup. On Friday, the bank said that it had developed a new mechanism for crypto trading. This was welcome news following reports that Goldman Sachs was suspending its creation of a crypto trading floor.
ETH/USD fell to an intraday low of 181.13. This was a sharp decline from the previous range the pair has been trading as shown below. While the RSI is trading at an extremely oversold level, the pair could continue the decline as the sell-off continues.