As reported, since the beginning of 2023, Bitcoin has had an impressive recovery with an increase of up to 40%. But contrary to the expectations of a new market rally, on February 10, Bitcoin was once again “engulfed” by negative rumors. The biggest crypto dropped to a 4-week low at $21,781. At the time of this writing, Bitcoin is trading at $21,902, down more than 3% over the past 24 hours.
Along with Bitcoin’s decline, the rest of the crypto market is also in red. Ether (ETH) dropped to $1,546; down 4.54% in the last 24 hours. Other major cryptocurrencies such as Binance Coin (BNB), Cardano (ADA), or Dogecoin (DOGE) all recorded declines of 4-6%.
The reason for this decline comes from the news that US regulators will tighten supervision of the cryptocurrency market in the near future, starting with the US Securities and Exchange Commission (SEC) accusing the Kraken exchange of not registering for staking services, claiming that this is an illegal sale of securities. This exchange was fined up to $30 million and had to close its staking operation.
On February 9, Coinbase CEO Brian Armstrong shared on Twitter:
He added:
“Staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.”