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Trillion-dollar market wobbles as AI coins stumble

After the SEC decision against Kraken, the total market slid back to the trillion-dollar mark in the last 24 trading hours.

By Mike Hesp
• 2 min read
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Trillion-dollar market wobbles as AI coins stumble

The SEC decision against Kraken sent the total market sliding back to the trillion-dollar mark in the last 24 trading hours.

Thursday night, crypto prices came under more pressure. Bitcoin (BTC) and Ethereum (ETH) prices corrected by about 5% within a few hours. The move followed Kraken, the crypto exchange, deciding—in consultation with the Security and Exchange Commission (SEC)—to stop its staking service for American users.

Bitcoin slipped back to the support level around $21,700 and dragged the whole crypto market down with it—especially the AI sector.

Prices of Fetch.ai (FET), SingularityNET (AGIX), and others fell more than 20%, but later managed to stabilize somewhat.

As a result of the sell-off, total market capitalization was about $40 billion lower, but is currently hovering above the psychological $1 trillion mark.

At the same time, Bitcoin’s dominance rose by 0.5 percentage points to 43.5%, rebounding from a 14-day low.

Looking at liquidations of leveraged long positions in the futures and derivatives market, the price correction can be seen as healthy. According to Coinglass, leveraged bets worth $220 million were liquidated in the last 24 trading hours.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.