Cryptocurrency Crumble: Bitcoin Falls, Smaller Digital Coins Plunge in Wake of SEC Crackdown
The price of Bitcoin fell solidly on Saturday, while small digital coins such as Solana, Cardano and Dogecoin sold off in the wake of the SEC’s regulatory response vs. cryptocurrency exchanges.
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Bitcoin fell to $25,501 early Saturday, returning to the worst levels since March set earlier this week. Bitcoin price is currently down 3.2% compared to 24 hours earlier to around $25,613. Minor tokens plunged to 2003 lows or worse on Saturday.
The Securities and Exchange Commission on Monday filed 13 charges against Binance, the world’s largest cryptocurrency exchange, and co-founder Changpeng Zhao, for alleged securities violations and illegal operations in the United States. On Tuesday, the SEC targeted the American cryptocurrency giant. Coin base (COIN), claiming that it operated as an unregistered securities exchange.
The SEC has also named a number of tokens as unregistered securities, including Cardano and Solana. Robinhood Markets (HOOD) Friday said it would remove Cardano, Solana and Polygon as a result.
The news sent cryptocurrencies and COIN stocks tumbling early in the week. Cathie Wood’s Ark Invest picked up another $21 million in Coinbase shares on Tuesday. Stocks recovered somewhat, but COIN stock still plunged 17.5% for the week.
Saturday’s drop may reflect general concern about SEC regulations, as well as fears that liquidity will dry up, especially for smaller digital coins.
Ethereum, the second most popular cryptocurrency, fell 5.7% on Saturday to $1,735.
Cardano fell 17% to 25.43 cents, hitting a 52-week low of 22.95 cents overnight.
Dogecoin, long touted by Tesla CEO Elon Musk, skidded 12% to 6.06 cents, hitting as low as 5.42 cents overnight.
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