Crypto market falls today as fallout from Silvergate Bank and U.S. regulator-led lawsuit against KuCoin weigh on investor sentiment.
Cryptocurrencies are experiencing a significant price decline today, with Bitcoin hitting a monthly low 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.
Many are concerned that if the $21,600 key level is breached, a revisit of the bear market lows could occur.
Ether’s price continues to suffer as the bears seem to be in control. The price has reached a monthly low at $1,425 and is currently down $1,407. Analysts are suggesting that the bears are in control of Ether price.
U.S. crackdown leads to increased crypto outflows
KuCoin is the latest exchange to be caught up in the crypto crackdown. On March 9, New York Attorney General Letitia James announced a lawsuit against the exchange, alleging that Ether is a security trading on the platform.
This 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. While some investors may see this as a negative development, others see it as an opportunity to invest in quality projects before they reach their full potential.