Today’s price action in the wide world of cryptocurrencies has been largely negative. Indeed, if the three largest tokens by market capitalization – Bitcoin (CRYPTO: BTC), ether (CRYPTO: ETH) and Binance coin (CRYPTO: BNB) – all down, the market tends to follow suit.
Over the past 24 hours, these large-cap tokens lost 3.5%, 3%, and 5.1%, respectively, from 9:30 a.m. ET. Unsurprisingly, the entire crypto market was down 3.6% on the past day, largely due to these moves.
These three tokens together make up about two-thirds of the value of the entire crypto market. Accordingly, other cryptocurrencies tend to catch a cold when this cohort sneezes. This seems to be the case today.
It was reported today that Binance has withdrawn its application for a Singapore exchange. In addition, Binance announced plans to completely remove its trading platform from Singapore by February 13 and focus on other markets. This has proven to be a major blow to Binance and the general sentiment in the crypto space as various global blockchain hubs continue to crack down on crypto in recent months.
It should be noted that this news follows high profile regulatory raids in China and India for bitcoin mining and crypto in general.
Investors appear to remain nervous amid the increasingly restrictive global regulatory environment surrounding the crypto sector. The grilling of crypto executives by Congress last week was the latest regulatory concern as the US was viewed as a relatively safe haven for these digital currencies.
Make no mistake – Bitcoin, Ethereum and Binance Coin reflect the broad sentiment of investors in the crypto space. In general, these top cryptocurrencies are the main beneficiaries of the capital inflows into this sector. Accordingly, those who look at how the crypto market is doing on any given day generally need to take a look at how these top cryptocurrencies are doing for a relatively decent idea.
There are currently more than 12,000 cryptocurrencies, each with their own catalysts and headwinds. However, the headwinds felt by these top three cryptocurrencies appear to be invading most cryptocurrencies today, with a Red Sea forming this morning.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.