Crypto correction continues: Bitcoin hits 3-week low as SEC cracks down on unregistered securities

As of February 13th, Bitcoin, which is the cryptocurrency with the largest market capitalization, saw a decline of 0.17% and was trading at $21,853 . Meanwhile, Ethereum had a decline of 0.95% and was trading at approximately $1,519.65.

The majority of cryptocurrencies saw a drop in value over the weekend. Bitcoin dropped below the $22,000 level, with Edul Patel, the Co-founder and CEO at Mudrex, attributing the decline to the temporary halt in staking service by the US-based Kraken cryptocurrency exchange and its subsequent $30 million fine from the SEC for not registering the service correctly.

According to Patel, the bearish trend of Bitcoin, which is currently trading near its support level of $21,770, is likely to continue and could potentially fall to $21,500 by the end of the week. At present, Bitcoin lacks sufficient momentum for a mid-term price recovery.

However, Bitcoin rebounded and regained several hundred dollars in the hours following the drop. It has remained relatively stable since then, currently trading just shy of $22,000. The market cap of Bitcoin has climbed back above $420 billion, and its dominance over alternative coins remains at 41.3%.

Crypto News

The New York Department of Financial Services (NYDFS) has ordered Paxos Trust, a blockchain company, to halt the creation of its Binance USD stablecoin, which is pegged to the dollar. This move comes shortly after the United States Securities and Exchange Commission (SEC) issued a wells notice to Paxos, alleging that Binance USD is an unregistered security. As a result, Paxos has been told to stop issuing more of its BUSD tokens, although it will continue to manage redemptions of the product.

The NYDFS is closely monitoring Paxos to ensure that it can handle redemptions in a controlled and compliant manner. On February 13, 2023, Paxos informed its customers that it would end its relationship with Binance for BUSD, due to several unresolved issues related to Paxos' oversight of its relationship with Binance in regard to the BUSD token. The increased regulatory attention on the third largest stablecoin comes amid growing scrutiny of the cryptocurrency market.

Major cryptocurrencies are trading as follows as of 9 am, 14 February 2023:

Bitcoin: $21,997.24 USD

-0.27%

Ethereum: $1,523.90 USD
-1.10%

Tether: $1.02 USD
+0.13%

USD Coin: $1.00 USD
-0.01%

BNB:$296.61 USD
-5.90%

XRP:$0.3719 USD
-1.28%

Dogecoin:$0.08288 USD
-0.29%

Cardano: $0.3609 USD
-1.30%

Polygon: $1.19 USD
-3.35%

Polkadot: $6.18 USD
-1.00%