Bitcoin and other top cryptocurrency assets, in the past week, have seen significant drops in the price. This group of top digital assets has depreciated by at least 10% in the period, with some falling by more than 15%.
Market Correction or Cause for Concern?
Among the cryptocurrencies that have witnessed a significant drop, the Arbitrum token (ARB) stands out, as it has plummeted by over 90%. However, this is an exceptional case since the Ethereum second-layer solution token fell sharply immediately after its launch due to an expected airdrop that occurred last week, as reported by Cointelegraph
Stacks (STX), which had been one of the biggest gainers in recent weeks, has depreciated by nearly 30% in a 7-day period, according to data from CoinMarketCap. This is noteworthy since it had been one of the most successful cryptocurrencies since the rise of Ordinals began, the NFT on Bitcoin with which Stacks has a close relationship. The list of cryptocurrencies with significant losses is completed by Fantom (FTM) with more than a 15% drop, Toncoin (TON), The Graph (GRT), Solana (SOL), and the Lido Dao token (LDO). All of these have experienced losses ranging from 11% to 13%.
Binance Lawsuit Impacting Bitcoin Price
According to previous reports by the Commodity Futures Trading Commission, on March 27, the United States Commodity Futures Trading Commission (CFTC) announced a lawsuit against Binance, the cryptocurrency exchange with the largest trading volume in the world. This news has had an impact on the bitcoin price and the rest of the market. BTC has fallen below $27,000, although it remains close, as reported by Bloomberg
The news of the lawsuit against Binance has caused a stir in the cryptocurrency community. Many have expressed concerns over the implications of the lawsuit, not just for Binance but for the cryptocurrency market as a whole. It has been reported that the lawsuit alleges that Binance has been operating an unregistered derivatives exchange, violating US law. While Binance has denied any wrongdoing, the news has caused a drop in the price of bitcoin and other cryptocurrencies.
The impact of the lawsuit on the cryptocurrency market remains to be seen. However, it is clear that the market is highly sensitive to news and events that can affect the price of cryptocurrencies. As the cryptocurrency market continues to evolve and mature, it is likely that we will see more instances of volatility and price fluctuations driven by a range of factors such as regulatory changes, technological developments, and market sentiment.
Nevertheless the current market sentiments seems positive with experts suggesting that there could be a bull run in the coming weeks.