New US sanctions on North Korea fuel fears of stiffer crypto regulations.
Digital assets saw another dip today, as Bitcoin fell to $102,425 after losing nearly 4% of its value over the past 24 hours.
Altcoins extended their declines as Ethereum plummeted by over 6% to $3,401.
The global cryptocurrency market lost 3% the previous day to $3.43 trillion.
Amidst the broader bloodbath, tokens linked to perpetual decentralized exchanges appeared to suffer the most.
According to Coingecko data, the value of perp tokens reduced from $18.511 billion to $16.381 billion in the last 24 hours.
That’s a roughly 13% dip, reflecting significant bearishness within a sector that many anticipate to shape the next stage of crypto evolution.
Top tokens in the category, including ASTER, HYPE, and JUP, have lost more than 10% of their value within the past day.
Perpetual tokens exhibit heavy selling pressure, signaling more downtrends before potential bounce-backs.
The cryptocurrency market has experienced faded sentiments lately.
Various developments contribute to the current bearish mode.
For instance, the Fed Governor magnified uncertainty over December interest rates with his latest remarks on Bloomberg Surveillance.
Also, bears thrived after the DeFi platform Balancer suffered an over $100 million hack.
Further, Stream Finance’s decision to freeze withdrawals and subsequent de-peg of its stablecoin added fuel to the fire.
The US Treasury Department crashed the struggling market after announcing new sanctions targeting North Korean crypto activities.
The Office of Foreign Assets Control confirmed sanctions against entities and individuals involved in information technology worker fraud and crypto-associated crime used to fund North Korea’s missile programs.
The post detailed:
Over the past three years, North Korea-affiliated cybercriminals have stolen over $3 billion in cryptocurrency. Often using sophisticated techniques such as advanced malware and social engineering.
Meanwhile, the announcement triggered panic across the markets as it hinted at stiffer cryptocurrency regulations and possibly aggressive enforcement moves.
Such developments might catalyze a regulatory domino effect where DeFi projects and exchanges face intensified scrutiny.
Market players potentially began reducing exposure as the sanctions updates surfaced, accelerating the broader sell-offs.
The cryptocurrency market displays substantial selling pressure.
Coinglass data shows liquidations surged past $1 billion over the past 24 hours.
Long positions suffered the most at $845 million, with shorts at $183 million.
Bitcoin lost the key support zone at $107,500 during the latest decline from weekly highs of above $115,300.
It looks poised for extended dips to the psychological level at $100,000 before setting a clear trajectory.
Thus, altcoins, including perpetual tokens, will likely plummet further from their current price levels before stabilizing and potentially bouncing back.
