Bitcoin ‘s price drops below $20,000 and the entire market concedes a sad -7%, falling well back below the $1 trillion capitalization market.
The Silvergate affair, the update of inflation data in the US and Europe, the US authorities and their crusade against the crypto sector seem to be undermining investor morale.
The weeks have come and gone for the crypto market since the middle of February, with a gradual erasure of the bullish recovery in place since the beginning of the year as these bearish fundamentals combine.
As a reminder, the Bitcoin price had its worst week since the surprise collapse of cryptocurrency exchange FTX in November and is hovering around $19,870.
Yesterday, equity markets in the U.S. also closed lower, including stocks of banks and companies specializing in digital assets.
More negative news for bitcoin and cryptos?
U.S. authorities continue their crusade against the crypto sector, with New York State Attorney General Letitia James filing a lawsuit against crypto exchange KuCoin.
In her complaint, the prosecutor accuses KuCoin of being an unregistered broker or dealer in securities, among other things, for selling Ethereum (ETH) which she considers a financial security.
In October 2021, Letitia James had already warned some unregistered crypto platforms, calling on them to cease their activities deemed illegal. The prosecutor is therefore taking action in 2023 by attacking the crypto exchange KuCoin head on.
With this complaint against KuCoin, the New York prosecutor is siding with U.S. regulator SEC Chairman Gary Gensler, who recently stated that all cryptocurrencies are financial securities/securities, except Bitcoin (BTC).
The overall market capitalization of the crypto market is now moving under $1 trillion. This Friday, the Crypto Fear & Greed Index, which analyzes investor sentiment, shows “fear” with a score of 34 versus “neutral” last week and “greed” in February.
