Bitcoin tapped $22,000 hours before the latest regulatory scrutiny coming from the US, this time after Paxos and BUSD were issued by the stablecoin company.
Somewhat expectedly, altcoins have reacted even worse, with HBAR, APT, FTM, GRT, and a few others dumping in the double digits.
Bitcoin Back Below $22K
Bitcoin was performing much better at the beginning of the month when it broke above $24,000 for the first time in five months following the latest interest rate hike by the US Federal Reserve.
However, the asset failed to continue its upward move and returned to $23,000 in the following days. The scenario took a turn for the worse after the US SEC froze the crypto bets, and BTC dropped to $21,400 – a three-week low.
The weekend was a bit more positive, with bitcoin recovering some ground and rising to $22,000. However, at this point, reports emerged that the SEC plans to take legal action against Paxos because it is believed to be selling unregistered securities masquerading as Binance USD (BUSD).
Further reports earlier today claim that the NYDFS ordered Paxos to stop minting new BUSD. Both of these had an immediate effect on BTC, which has since dropped further below $21,600.
Thus, the market cap of bitcoin has dropped to $416 billion, but its dominance over alts has decreased and reached 41.6% as most of them have suffered huge losses.
BNB down 5%
Given the correlation between Binance Coin and BUSD, it was somewhat expected that the former would lose some dollar value following US regulatory scrutiny. BNB is down almost 6% on the daily scale and is trading below $300.
Dogecoin, Polygon, Shiba Inu, Avalanche, Uniswap, ATOM and Chainlink are in no better shape than large-cap alts, all of which posted similar price declines.
Ethereum is below $1,500 after another 3% daily decline. Ripple, Cardano, OKB, SOL, DOT and LTC are also in the red.
Even more daily losses are evident from LDO, APT, HBAR, FTM and GRT as they are all down by double digits.
The cumulative market cap of all crypto assets has lost the coveted $1 trillion line on the CMC and is down to $990 billion.
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source: cryptopotato.com
