SEC's Crypto Crackdown: Bitcoin, XRP Plummet Amidst Regulatory Storm

Coin WorldSaturday, Mar 1, 2025 2:10 am ET

1min read

The cryptocurrency market experienced a significant downturn on February 28, 2025, with Bitcoin dropping to $78,907 and XRP falling to $1.99. This decline coincided with the U.S. Securities and Exchange Commission (SEC) investigating five major crypto firms within a span of just five days. The SEC's actions have sparked discussions about the regulatory body's evolving stance on cryptocurrencies and its potential implications for the market.

The crypto market decline has impacted the altcoin sector, pushing it towards a downtrend. Amid this market decline, the SEC made an unexpected move by investigating five major crypto giants: Robinhood, Uniswap, Gemini, Consensys, and coinbase. This sudden shift in regulatory priorities has been reported to favor the crypto market, but despite the favorable environment, giants like XRP and Bitcoin are currently witnessing downtrends due to high volatility.

Bitcoin has dropped 21% from its peak on January 20, following Donald Trump's U.S. presidential election victory in November. The 21% Bitcoin price drop is the result of fading hopes for a U.S. strategic Bitcoin reserve and growing concerns about tariff threats, which have dampened demand for speculative assets. Now, with the market uncertainty adding to the downtrend of Bitcoin, at the time of writing, Bitcoin is trading at $78,907.

The XRP downtrend is also a cause for concern in the bearish market. It is currently sitting at $1.99, reflecting the ongoing downward trend. XRP is going through a tough time as it faces difficulty pushing past the $2.20 resistance level, while the whole crypto space is struggling to gain momentum. However, to make any upward trend, XRP downtrend, an uptrend, it has to cross the mark of $2.30, which would shift the market sentiment and push the price toward $2.350, $2.420, or even $2.450.

Despite Trump's promises of a "crypto presidency" and his aim of a national bitcoin reserve, the market remains subdued. Many investors are now wondering if the administration is really as pro-crypto as it first seemed. Analysts suggest that the market is in a "wait-and-see" phase, holding out for

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