Bitcoin had touched $22,000 hours before the latest regulatory scrutiny coming from the US, this time going after Paxos and the BUSD stablecoin the company issues.
Unsurprisingly, altcoins have reacted even worse, with HBAR, APT, FTM, GRT, and a few other dumping in double digits.
Bitcoin back below $22K
Bitcoin was doing much better at the beginning of the month when it broke above $24,000 for the first time in more than five months after the US Federal Reserve’s latest interest rate hike.
However, the asset failed to continue higher and returned to $23,000 in the following days. The picture worsened after the US SEC went after cryptocurrency staking and BTC fell to $21,400, a three-week low.
The weekend was a bit more positive, with bitcoin picking up some ground and rising to $22,000. At this point, however, reports surfaced that the SEC plans to take legal action against Paxos because it allegedly sells unregistered securities in the form of Binance USD (BUSD).
More reports today claimed that the NYDFS ordered Paxos to stop creating new BUSD. Both had an immediate effect on BTC, which has plunged below $21,600 as of now.
As such, bitcoin’s market cap has shrunk to $416 billion, but its dominance over alternatives has taken a breather and climbed to 41.6% as most of them have suffered much more.
BNB plunges 5%
Given the relationship between Binance Coin and BUSD, the former was expected to lose some of its dollar value following US regulatory scrutiny. BNB is down about 6% on a daily scale and is trading well below $300.
Dogecoin, Polygon, Shiba Inu, Avalanche, Uniswap, ATOM, and Chainlink are in no better shape than larger-cap alternatives, all of which have marked similar price declines.
Ethereum is below $1,500 after another 3% daily drop. Ripple, Cardano, OKB, SOL, DOT and LTC are also in the red.
Even more daily losses from LDO, APT, HBAR, FTM and GRT are evident as they are all down double digits.
The cumulative market capitalization of all crypto assets has missed the coveted $1 trillion line on CMC and is down to $990 billion.
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