Crypto Market Plunges: Bitcoin Drops Below $100K, SEC Launches Task Force

The cryptocurrency market experienced a significant downturn on February 5th, with Bitcoin dropping to $98,000 and XRP plummeting by 7% amid broader market volatility. The global market cap fell by 2.84% to $3.22 trillion, and trading volume decreased by 24.46% to $193.73 billion. The Fear & Greed Index stood at 38, reflecting a neutral sentiment among investors.

Bitcoin's price declined by 2.52% in the last 24 hours, settling at $98,206.16, despite its market dominance climbing to 60.40%. The 24-hour trading volume for BTC decreased by 12.95% to $72.89 billion. XRP suffered the steepest decline among major cryptocurrencies, plunging 7.32% following an unexpected one-hour network halt. Ethereum price dropped by 2.57% to $2,734.07, while Solana slipped by 3.37% to $208.08.

The U.S. Securities and Exchange Commission (SEC) announced the formation of a new Crypto Task Force, led by Commissioner Hester Peirce, to address long-standing uncertainties in the crypto space. The task force aims to clarify crypto classification, lending, staking, and the SEC's role in the market. It will also review applications for new crypto exchange-traded funds (ETFs), including those for XRP, Solana, and Dogecoin.

Empower Oversight, a nonprofit watchdog group, filed a lawsuit against the SEC for the release of a long-awaited report on ethical conflicts and selective enforcement within the agency. The report, completed over a year ago, examines potential conflicts of interest involving former Director of the SEC’s Division of Corporate Finance, William Hinman, and his role in the agency’s decisions on cryptocurrencies.