<p>Market picture</p><p>The crypto
market is suffering impressive losses, mirroring traditional markets flee from
risk, which has mainly hit the financial and tech sectors—total crypto
capitalisation is down 6.5% in the last 24 hours to 930 billion.</p><p>Bitcoin fell
below $20K (-7.9% in the last 24 hours), an emotionally significant level for
the first cryptocurrency. As expected, the drop below $21.5K accelerated the
sell-off. Bitcoin is currently testing its 200-day moving average, which
appears to be the last line of defence on the way to $18K. </p><p>Further
decline in risk-sensitive assets can punish early crypto optimists and raise
questions about whether we are in the ‘crypto spring’. The bulls have technically
oversold, and the fact that markets rarely quickly abandon 200-day MA.</p><p>News Background</p><p>US
authorities have moved to the Coinbase around 10,000 BTCs seized from the Silk
Road darknet marketplace. Market participants fear that the US authorities will
start selling off the bitcoins seized from cybercriminals.</p><p>Another
reason for the decline in the crypto market was the closure of Silvergate Bank.
Previously, there had been rumours that Silvergate Bank might reopen, but
management decided to close the bank and return deposits to customers.</p><p>The head of
the Commodity Futures Trading Commission (CFTC), Rostin Behnam, said that the
agency, not the SEC, should regulate Ethereum and stablecoins because they are
commodities. According to Behnam, he would only have allowed the launch of ETH
futures if he was firmly convinced that it was a commodity. Previously, SEC
chief Gary Gensler argued that all crypto assets except bitcoin are securities.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>
market is suffering impressive losses, mirroring traditional markets flee from
risk, which has mainly hit the financial and tech sectors—total crypto
capitalisation is down 6.5% in the last 24 hours to 930 billion.</p><p>Bitcoin fell
below $20K (-7.9% in the last 24 hours), an emotionally significant level for
the first cryptocurrency. As expected, the drop below $21.5K accelerated the
sell-off. Bitcoin is currently testing its 200-day moving average, which
appears to be the last line of defence on the way to $18K. </p><p>Further
decline in risk-sensitive assets can punish early crypto optimists and raise
questions about whether we are in the ‘crypto spring’. The bulls have technically
oversold, and the fact that markets rarely quickly abandon 200-day MA.</p><p>News Background</p><p>US
authorities have moved to the Coinbase around 10,000 BTCs seized from the Silk
Road darknet marketplace. Market participants fear that the US authorities will
start selling off the bitcoins seized from cybercriminals.</p><p>Another
reason for the decline in the crypto market was the closure of Silvergate Bank.
Previously, there had been rumours that Silvergate Bank might reopen, but
management decided to close the bank and return deposits to customers.</p><p>The head of
the Commodity Futures Trading Commission (CFTC), Rostin Behnam, said that the
agency, not the SEC, should regulate Ethereum and stablecoins because they are
commodities. According to Behnam, he would only have allowed the launch of ETH
futures if he was firmly convinced that it was a commodity. Previously, SEC
chief Gary Gensler argued that all crypto assets except bitcoin are securities.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>
This article was written by FxPro FXPro at www.forexlive.com.