Cryptocurrency prices follow the US stock market, falling simultaneously... SEC declares 'Project Crypto' [Decenter Market Update]

The three major U.S. stock indices closed lower, and major cryptocurrencies also declined across the board.

According to the global cryptocurrency market site CoinMarketCap on the 1st, BTC was traded at $116,186.82 at 8 a.m., down 1.05% from 24 hours earlier. At the same time, the altcoin leader Ethereum (ETH) also recorded a 1.4% drop at $3,709.18. XRP fell 1.64% to $3.021, and Solana (SOL) dropped 1.65% to $172.63.



The domestic market also showed a downward trend. At the domestic exchange Bithumb, BTC recorded a 0.57% drop from the previous day at 162,036,000 won. ETH was down 0.86% to 5,180,000 won, and XRP was trading at 4,228 won, down 1.19%.

The New York stock market started with a rise due to strong performance from Meta and Microsoft (MS), but fell collectively as profit-taking sales poured in. Additionally, an analysis suggests that risk aversion sentiment further intensified as former U.S. President Donald Trump issued an executive order pressuring major pharmaceutical companies to lower drug prices.

However, expectations for market recovery remain as pro-cryptocurrency policies in the U.S. accelerate. On the 31st (local time), Paul Atkins, SEC Commissioner, announced the launch of 'Project Crypto' to pursue new cryptocurrency policies, stating that "most cryptocurrencies are not securities." This reverses the SEC's approach during the Biden administration, which viewed most altcoins except BTC as securities and regulated major cryptocurrency companies.

The Fear and Greed Index from cryptocurrency data analysis firm Alternative.me dropped 2 points from the previous day to 72 points, indicating a state of 'greed'. This index means that the closer to 0, the more contracted the investment sentiment, and the closer to 100, the more overheated the market.

Reporter Kim Jung-woo