Crypto diehards can’t seem to catch a break, with the rapidly shrinking digital-asset world being pummeled for another week by eroding token prices, fresh regulatory actions and a case of contagion deja vu.
One-month crypto-equities correlations show Bitcoin is back to mirroring stocks once again for directional moves, and trading volumes “are struggling to sustain higher levels” while lingering below last year’s averages, according to Citigroup strategists led by Alex Saunders. Meanwhile, Bitcoin’s share of the total crypto market has grown to the highest in about 20 months, meaning that more investors are flocking to it amid uncertainty at the expense of other tokens.
The onslaught comes after what some observers have termed as one of the most consequential weeks ever in the little-more-than decade-old sector. In addition to suing Binance and Coinbase for operating illegal exchanges, the U.S. Securities and Exchange Commission sent a chill through markets last week by deeming a raft of smaller tokens to be unregistered securities.
