• Bitcoin and Ether prices dropped on Monday due to investor concern over inflation data and stablecoin regulation.
• The New York Department of Financial Services ordered Paxos to stop minting new Binance USD tokens, resulting in a drop in value against its rival tether (USDT).
• Investors will be watching the U.S. Federal Reserve’s consumer price index (CPI) report tomorrow to determine the size of the central bank’s next interest rate hike.

Cryptocurrency Prices Drop

Bitcoin and ether, two of the largest cryptocurrencies by market capitalization, both slid on Monday as investors grew concerned with inflation data and stablecoin regulation. Bitcoin was down 1.4% trading at around $21,640 while ether fell below $1,500.

New York Department of Financial Services Orders Paxos to Stop Minting BUSD Tokens

The New York Department of Financial Services issued an order to Paxos mandating that it stop minting new Binance USD tokens (BUSD). This resulted in BUSD falling to 0.9950 cents against its rival tether (USDT) on the Binance exchange according to crypto data firm Kaiko.

U.S Federal Reserve’s Consumer Price Index Report

Investors are keeping an eye out for Tuesday’s consumer price index (CPI) report from the U.S Federal Reserve which is expected to give insight into how monetary policy impacts inflation and possibly predict the size of the central bank’s next interest rate hike. The CPI currently stands at 6.5%, indicating some downward momentum that has pleased riskier asset markets but Fed governors remain worried about over-tightening money supply and causing harm to economic growth.

Kraken Agrees To Pay $30 Million Fine in SEC Settlement

Bitcoin experienced significant drops this past week after Kraken agreed to shutter its staking service in the United States and pay a $30 million fine as part of a settlement with the U.S Securities and Exchange Commission (SEC). BTC had recently changed hands above $24,000 but now analysts are predicting that it may find support at $20,000 in upcoming weeks due to recent events impacting market sentiment negatively.

Conclusion

Overall cryptocurrency markets have been bearish this month with bitcoin losing roughly a quarter of its January gains and ether dropping below $1500 as investors worry about factors such as inflation data, stablecoin regulations and restrictions imposed by government agencies like the SEC on exchanges like Kraken could continue driving prices lower in coming weeks ahead of Tuesday’s CPI report from the Federal Reserve which could provide more clues as to future monetary policy decisions taken by central banks globally affecting crypto markets going forward