The market for cryptocurrencies is declining.
Over the last week, the cryptocurrency market has seen a decline, with several of the top cryptocurrencies suffering significant losses. This follows a sustained phase of growth that began the year.
Bitcoin Depreciates
By market cap, Bitcoin is the most valuable cryptocurrency in the world. This week, it lost the most money intraweek. Data from CoinGecko shows that the cryptocurrency’s value dropped to $21,760 at the beginning of the weekend, a 7.5% reduction over the previous seven days.
Regulators Take Action Against Crypto
The market’s negative attitude is mostly a result of increasing scrutiny from American regulators. This comes after a number of prominent companies, including Celsius, Three Arrows Capital, and FTX, filed for bankruptcy.
The SEC closes the Kraken Staking Service
When the SEC revealed that it had fined Kraken $30 million and ordered it to cease down its staking business, the rumors of greater regulatory action were validated. After Armstrong, CEO of Kraken, supported Ethereum staking, the action was taken.
Additional Cryptocurrencies Suffer Losses
Monero (XMR), Avalanche (AVAX), Dogecoin (DOGE), Solana (SOL), Cardano (ADA), Litecoin (LTC), Cosmos Hub (ATOM), and Toncoin are a few more popular cryptocurrencies that saw losses this week (TON). The biggest losses were suffered by Solana, who had a 17% decline in market value.
Lido Finance Sees Increase
The DAO token for Lido Finance, the biggest liquid staking platform, was the only well-known cryptocurrency to see substantial increases this week. Following the team’s disclosure of information of a significant update intended to enable Ethereum withdrawals and diversify the network’s validators, the value of LDO jumped by 11% to $2.55. The DAO must still vote to accept the change, though. Investors who wanted to cast their ballots and those worried about the future of Ethereum staking in the wake of the SEC’s action against Kraken probably drove the upward price action.