The SEC and inflation are sinking cryptocurrencies: bitcoin could test $20,000.

“It looks like the bulls have lost their appetite once again as the price shows more weakness. »Naeem Aslam, chief market analyst at AvaTrade, points this out. According to this expert, the main reason for the fall of cryptocurrencies is the fear that the Securities and Exchange Commission (DRY(19459003]) from the United States suspend cryptocurrency staking in the world’s largest economy.

The American regulator fined the Kraken exchange and prohibited it from providing such services in the United States.. The fine also served as a warning to all platforms that provide similar services, such as Coinbasewhose CEO and co-founder pointed out that the “terrible” path the SEC would take if it started this crusade..

“The question that many operators and investors are currently asking is how the sector will be affected if retail operators are banned from gambling in the United States. “Staking” has been an important part of the equation and if it is no longer available, it can influence many players in the industry.“, notes Aslam.

On the other hand, Joe DiPasquale, CEO of cryptocurrency fund manager BitBull Capital, noted that. Bitcoin performs a “bottom test”. after hitting $24,000 with your fingertips. According to this expert, The next few days will decide if the hot cryptocurrency goes back up to $23,000 or if it drops “fast enough” to $20,000..

Similarly, “cryptos” also focus on the labor market. macroeconomic domainbecause the january inflation figure for the united states which will be released on Tuesday could swing the market. In this regard, Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, notes that US equities have recorded “their worst week since the beginning of the year” over the past five days, driven by the following factors: the “hawkish” comments of Federal Reserve (Fed) officials. after the surprising employment data.

Hardline comments from many members are undermining sentiment, as tensions rise ahead of important US CPI data due on Tuesday. If US inflation hasn’t slowed, or has slowed enough, or, God forbid, has risen unexpectedly on a yearly basis, we could quickly see optimism… post-payroll and pricing in the “Goldilocks” scenario. gives way to fear and chaos“, she underlines.

For his part, Aslam is very clear on the possible scenarios after the inflation reading. “If inflation improves and declines further from the previous reading, that would be the best news for market participants and it is very likely that there are more bulls in the market. However, if the reading starts to take a 180 degree turn and shows a bounce, we could easily see traders panicking as they are more than likely anticipating much more hawkish policy from the Fed. Under these conditions, it would even be wrong to think that the rate at the end of the year will be close to the current projection of 5% to 5.25%.” , did he declare.

In the rest of the market, general declines. Ripple (XRP), cardano (ADA) or polygon (MATIC). are down more than 2%. Among stocks in positive territory are solana (SOL) or at dogecoin (DOGE).