Crypto Market Crash Imminent? Liquidation Breaches $140 Million

Crypto News: The global digital asset market registered a massive drop on Thursday after witnessing the relief rally over the past few weeks. The cumulative crypto market cap declined by more than 3% over the last day as the biggest digital assets like Bitcoin (BTC) and Ethereum (ETH) prices slid by around 2%.

Why crypto market is on a decline?

As per the data, the crypto market saw a liquidation of around $144 million by more than 63K traders in the last 24 hours. However, the single largest liquidation order happened on Bybit of $2.7 million. This traders’ move has left the market cap standing at $1.05 trillion. While 24 hour trading volume saw a jump of 5% to stand at $64 billion.

However, this significant drop came after Brian Armstrong, CEO of Coinbase made comments that the U.S. SEC is in the pursuit of getting rid of crypto staking for retail users. He asserted that this can turn out to be a terrible path for the nation. Read More Crypto News Here….

Armstrong stated that staking is an important innovation in the crypto industry as this allows users to participate directly in running open crypto networks. This innovation brought many positive improvements in the industry that includes scalability, and security with reducing carbon footprints.

However, SEC’s probe of the cryptocurrency exchange Kraken for breaching rules around the security offering made a huge impact on the market.

Ethereum is a Security?

If this is true then this can turn out to be bad news for the market as this will lead to action of proving “ETH is security” FUD. However, this action can prove to be a positive for Liquid Staking Derivative tokens as they would gain shares from exchanges.

As per reports, Kraken is likely to settle with the SEC and will stop offering staking services. Meanwhile, the commission is expected to apply this precedent to Coinbase next. This course of action can lead to further market uncertainty.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]