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Investors continue to feel bearish about BTC as they anticipate tougher regulatory crackdowns and monetary policies. Several crypto analysts have reported that selling activity on various exchanges has surpassed buying in recent weeks.

Since the start of the year, regulators around the world have been going after crypto companies that they believe are non-compliant. In the United States, the Securities and Exchange Commission (SEC) has been busy recently, taking enforcement actions against companies issuing unregistered securities.

SEC Vs. Non-Compliant Companies

In January, the agency filed a lawsuit against crypto broker Genesis and exchanged Gemini for allegedly offering unlicensed securities. The SEC leveled similar charges against Kraken, demanding the exchange pay over $30 million in fees.

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The biggest crypto exchange by trading volume, Binance, is also under regulators’ radar. Recent reports show that the company is expected to pay penalty fees to settle several regulatory probes into its business operations.

The latest news scaring off investors involves Silvergate. The crypto-friendly bank announced on Wednesday that it was planning to halt its operations. This development comes after the company delayed submitting its annual 10-K report to SEC, citing it needed more time to conclude certain internal audits.

Silvergate Puts Crypto in the Red

Blockchain analytics company Kaiko says Silvergate’s bankruptcy rumors have caused a shift in sentiment, with Bitcoin funding rates going negative last weekend to reach their lowest level this year.

James Butterfill, CoinShares Head of Research, suggests that the present investor sentiment is mostly fueled by regulatory crackdown than the Fed’s moves. In fact, according to CoinShares’ Monday report, crypto investors have been withdrawing money for the fourth consecutive week because of regulatory uncertainty.

However, another group of investors is selling off their risk assets as they predict the Fed could continue imposing more aggressive monetary policies. The central bank has been hiking interest rates in an attempt to slow the record-high inflation.

Friday’s Report to Dictate Fed’s Next Moves

All focus is on Friday when the US government releases its latest non-farm payrolls report. Financial analysts say this report will determine whether the Fed will increase interest rates.

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James Davis

By James Davis

James Davis is a prominent crypto writer and analyst at Herald Sheets, recognized for his well-researched articles and thorough analysis of the dynamic digital currency market. Holding a degree in Economics from Harvard University, James combines his academic background with a keen interest in cryptocurrency to provide readers with the latest industry insights and trends.