Crypto Market News: in the world of CRYPTOCURRENCIESToday's market downturn has left many investors and enthusiasts searching for answers. The broader cryptocurrency market took a hit on Tuesday due to the drop in the price of Bitcoin that came against the backdrop of heightened regulatory uncertainty and other vital factors.
Rising concerns about the debt ceiling
The possibility of the United States defaulting on its debt is now higher than ever, posing a threat to send financial markets around the world into uncharted territory.
Should the United States default on its debt, there is a considerable possibility that the United States Treasury will run out of funds, which will limit liquidity to some degree, and will also negatively affect Bitcoin. considering the cryptocurrency market is still strongly correlated with the US stock market, the value of cryptocurrencies is likely to remain volatile if things worsen.
Read more: Billions in SHIB Sent to Dead Wallets as Consumption Rate Rises 26,000%
Mass ETH bet redemption
The largest Ethereum Lido staking DeFi protocol, opened redemptions for his stETH (Staked ETH) token on May 16. This resulted in an exchange of $500,000 worth of Ether in less than three hours. It is anticipated that this amount will increase dramatically, especially when the major entities and companies that have bet with Lido start processing their withdrawals.
Also, at the same time as the ongoing Ethereum withdrawals, the bankrupt crypto lender Celsius was seen transferring significant amounts of cryptocurrencies. Celsius moved close to 428K STETH, which was valued at around $781 million at the time of the transfer.
Regulatory uncertainty of brewing
The cryptocurrency sector plunged a day after the SEC's legal team answered to Coinbase's complaint seeking clarification on which tokens qualify as securities, labeling the lawsuit "baseless." Recent court records reveal that the SEC suggested that it is under no obligation to provide Coinbase's requests made in the petition and asserted that the agency would abide by the regulations they are currently following.
This led to the widespread belief that the SEC is still a long way from establishing a decisive crypto legal framework, in contrast to the MiCA law, which was just given the chance. approval of the Council of the EU today.
As things currently stand, the bitcoin price is exchanging hands at $27,018, which is down 1.42% over the last 24 hours compared to Ethereum, which is currently hovering around the $1,800 price range, posting a 0.58% loss over a period of similar time.
Also read: World's Largest Investor Paul Tudor Jones Warns Against Buying Bitcoin Now
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication has no responsibility for your personal financial loss.
