• Ethereum (ETH) has dropped sharply on Wednesday due to rising US bond yields, UK inflation concerns and an aggressive liquidation of long positions.
• SEC Chair Gary Gensler refused to say whether he views ETH as a security when pressed by Congressman Patrick McHenry during a Congressional hearing Tuesday.
• Some have suggested Gensler’s reluctance to label ETH a security could be bullish for ETH, however the market seems to have not liked the lack of clarity from the SEC chair.
Ethereum Price Drops Sharply
Ethereum (ETH) has dropped sharply on Wednesday due to rising US bond yields, UK inflation concerns and an aggressive liquidation of long positions. The token was last trading just to the south of the $2,000 level, down around 6.0% on the day, as per TradingView. That means ETH is down around 7.5% versus the multi-month highs it hit in the mid-$2,100s last week. Long positions worth close to $45 million have been wiped out so far this Wednesday, which is highest since 8th March according to crypto derivatives analytics website coinglass.
SEC Chair Refuses To Say if ETH is Security
SEC Chairman Gary Gensler appeared before Congress on Tuesday and refused to give a definitive answer when asked by Congressman Patrick McHenry if he viewed ETH as a security or not. Despite the SEC taking enforcement action against US-based crypto firms based on its view that it is a security, Gensler avoided giving a straightforward answer about ETH’s status in regards to securities laws. While at MIT he previously stated that he does view ETH as a security but did not say so again before Congress yesterday.
Gensler’s Refusal Could Be Bullish?
Some analysts have suggested that Gensler’s reluctance could be bullish for ETH given that it leaves open potential regulatory backing off from trying to regulate it as a security – however this doesn’t appear to be what markets are taking away from his refusal thus far..
Crypto Market Outlook
The outlook for cryptocurrency markets remains uncertain in light of recent events and newsflow surrounding regulation. It appears that there may still be some pushback against certain aspects of regulation coming out of industry participants while regulators remain steadfast in their attempts at better oversight over crypto markets and clamping down on any illicit activity related thereto – something which may continue weighing on prices going forward until more clarity emerges around regulation within U .S crypto markets specifically..
Overall Ethereum prices have dropped sharply this week amid rising US bond yields and UK inflation concerns combined with an aggressive liquidation of long positions – although some analysts suggest that SEC Chair Gary Genslers refusal Tuesday when asked whether he views Etherium as a security could potentially end up being bullish for Etherium should regulators back off from attempting stringent regulations surrounding cryptocurrencies going forward. At present though no definite conclusions can be drawn either way regarding future price movements until further clarity emerges regarding U .S specific regulations surrounding digital assets such as Ethereum