Bitcoin had tapped $22,000 hours before the latest regulatory scrutiny coming from the US, this time going after Paxos and the BUSD stablecoin the company issues.
Somewhat expectedly, the altcoins have reacted even worse, with HBAR, APT, FTM, GRT, and a few others dumping by double digits.
Bitcoin Back Below $22K
Bitcoin was performing a lot better at the start of the month when it pumped above $24,000 for the first time in over five months after the latest interest rate hike from the US Federal Reserve.
However, the asset failed to continue upwards and returned to $23,000 in the following days. The landscape took a turn for the worse after the US SEC went after crypto staking, and BTC fell to $21,400 – a three-week low.
The weekend was a bit more positive, with bitcoin recovering some ground and going up to $22,000. At this point, though reports emerged that the SEC plans to undertake legal actions against Paxos because it supposedly sells unregistered securities in the form of Binance USD (BUSD).
More reports from earlier today claimed that Paxos was ordered by the NYDFS to stop creating new BUSD. Both of these had an immediate effect on BTC, which slumped to and below $21,600 as of now.
As such, bitcoin’s market cap is down to $416 billion, but its dominance over the alts has taken a breather and is up to 41.6% as most of them have suffered a lot more.
BNB Slumps 5%
Given the relationship between Binance Coin and BUSD, it was somewhat expected that the former will lose some of its dollar value following the US regulatory scrutiny. BNB is down by roughly 6% on a daily scale and trades well beneath $300.
Dogecoin, Polygon, Shiba Inu, Avalanche, Uniswap, ATOM, and Chainlink are in no better shape from the larger-cap alts, all of which have marked similar price declines.
Ethereum is beneath $1,500 after another 3% daily drop. 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 CMC and is down to $990 billion.
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