The cryptocurrency market is facing concerns over potential regulatory action by the Securities and Exchange Commission (SEC), leading to a decline in investor enthusiasm. The recent legal battle between Coinbase and the SEC, coupled with the fear of additional rules, has created a headwind for the sector.

Banking crisis impacts on cryptocurrency market

The banking crisis, with First Republic Bank being taken over by JPMorgan Chase, has also impacted the cryptocurrency market. Since the collapse of Silicon Valley Bank, cryptocurrency prices have been on an upward trend, with Bitcoin gaining 22% in March alone. Investors are seeing decentralized currencies as a safe haven play, with the KRE outperforming the NASDAQ.

Cryptocurrency market impacted by macro data and Fed moves

The cryptocurrency market is also being impacted by macro data and moves by the Fed. The looming decision from the Fed on rate hikes and tightening credit conditions is causing cost of capital turmoil in the financial sector. This is creating headwinds for the cryptocurrency market, as the macro data points and Fed moves ripple into the price of Bitcoin.

Coinbase legal fight with SEC impacting prices

The recent legal fight between Coinbase and the SEC is impacting prices in the cryptocurrency market. The formal notice issued by the SEC means that Coinbase may be forced to register as a national securities exchange, which would require them to jettison their customer business. This is creating a huge headwind for the business, with Coinbase taking a dip to the downside.