The crypto market is in imminent danger! Right? Seems like a bit of exaggeration. However, starting last Monday, it’s made headlines worldwide. No wonder. Last week, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against two major cryptocurrency exchanges, Binance and Coinbase. Such an act was bound to cause trouble for the entire crypto industry.
The SEC launched its attack, accusing Coinbase and Binance of fraudulent activities, which brought into question the future of crypto trading. It didn't take long for investors to wrap their minds around the circumstances. The total crypto market cap chart shows proof.
Since then, leading cryptocurrencies such as Cardano (ADAUSD), Solana (SOLUSD), and Litecoin (LTCUSD) have experienced significant value drops. However, Bitcoin (BTCUSD) and Ethereum (ETHUSD), with their larger market shares, have remained relatively stable, declining by less than 5%.
The forecast may seem discouraging, but it is important to conduct a thorough analysis before jumping to conclusions. While analysts' opinions can be helpful in your research, they should not be the sole basis for your trading strategy. However, one thing remains clear amidst this chaotic situation: investing in the crypto industry or crypto-focused projects requires a great deal of caution until the conflict between regulators and companies is resolved.