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.