The cryptocurrency market has experienced a significant downturn as the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against leading cryptocurrency exchange Binance. The legal action has put bears in control of the market, causing Bitcoin to fall below $27,000.
According to recent reports by Crypto Press Cryptocurrencies News Network, the total cryptocurrency market cap observed net outflows of $40 billion over the last 24 hours. As a result, it currently stands at $1.12 trillion - down 3.42% from its previous value of $1.16 trillion.
During this reporting period, Bitcoin and Ethereum's market cap witnessed losses of 4.25% and 2.75% respectively - settling at $516.82 billion and $210.35 billion.
While other top 10 cryptocurrencies also saw significant losses during this time frame; XRP was an exception that remained stable with no major fluctuations.
The CFTC's lawsuit against Binance is believed to be one of the primary reasons for this sudden decline in the crypto-market's value.
Binance is known for being one of the largest crypto exchanges globally with daily trading volumes exceeding billions; hence any negative news concerning them can have a significant impact on digital assets' prices worldwide.
This legal action comes amid growing concerns about money laundering and fraud within various crypto platforms globally; leading regulatory bodies worldwide are tightening their grip on these platforms through strict laws and regulations to curb illegal activities associated with cryptocurrencies.
As per sources close to Crypto Press Cryptocurrencies News Network, many investors are now moving away from digital assets due to increased regulatory scrutiny and sell-off pressures resulting from lawsuits such as that against Binance.
In conclusion, while there may be several factors contributing towards recent declines in cryptocurrency values across global exchanges- including China's crackdown on Bitcoin mining and Elon Musk's recent tweets- it is without a doubt that the CFTC's lawsuit against Binance has been a significant blow to the crypto-market, pushing bears in control of the market and causing Bitcoin to fall below $27,000.