The Reason for Bitcoin, Ethereum, and Dogecoin’s Downturn This Weekend
Over the weekend, major cryptocurrencies, including Bitcoin, Ethereum and Dogecoin, all experienced losses of varying degrees. This comes after a tumultuous week in the crypto world, with the SEC launching lawsuits against the Binance and Coinbase exchanges. While Bitcoin and Ethereum are considered more likely to be classified as commodities than securities, regulatory oversight is likely to increase for the sector as a whole. This could have more of an impact on meme coins like Dogecoin, which have less utility and generate high profits for insiders. The 24/7 nature of the crypto market can also lead to volatility, and it is speculated that this weekend’s losses may have been a result of thin liquidity and leveraged positions. However, the fact that the crypto market did not experience a major reaction to the SEC lawsuits suggests that investors are already counting regulatory risks in their decisions.