Most of the
tokens labeled as securities by the U.S. Securities and Exchange Commission
(SEC) were sold off last Friday and Saturday. Solana (SOL), Cardano (ADA),
Cosmos (ATM), Filecoin (FIL), and Sandbox (SAND) prices dropped by around 30%,
as investors consider these coins toxic after SEC claims. But there were other
significant reasons for a sell-off.
Grayscale
dropped Filecoin Trust registration request. Many believe, this will not be the
only request by the trusted authority, and other requests will be filed with
regard to other security-labeled coins. Robinhood Markets, a large American
broker, has removed Cardano, Polygon, and Solana from its trading platform.
Binance subsidiary in the United States stopped all withdrawals in U.S.
Dollars. So, there are plenty of other reasons for a market tumble.
The tumble
started on Friday night when the stock market was closed. This peculiarity
should be especially noted, and we should not rush to conclusions regarding the
timing of large price movements. Large market players are waiting for the
appropriate moment when less effort could push the market significantly in
either direction amid low liquidity.
BTC prices
fell as forecasted towards the resistance at $25,000 per coin, and further down
to $22,000. The global situation in the markets is mixed, as the U.S. Dollar
continues to be in demand even when the American economy is flagging a
slowdown. Weaker economic data from Germany and China is contributing to
overall disappointment. However, the World Bank is rather more optimistic as it
raises its global GDP forecast, and Goldman Sachs lowers the chances of a U.S.
recession during this year to 25% from 35% before. This is simply not enough
for risky assets to continue their recovery. Even if the stock market in the
Unites States does resume its rally, it does not necessary mean that the crypto
market would follow. Many upside drivers for crypto assets, like pandemic
relief cheques that were issued by the U.S. government, have now disappeared.
Some support for stocks could be found in the integration of AI into business
processes. But this will hardly affect crypto assets. So, crypto enthusiasts
should wait for a solid reason for a recovery to take place in the crypto
market.