- After Kraken’s staking service ended, clients’ 1.23 million ETH staked assets became their responsibility.
- Given January 2023’s soaring cryptocurrency valuations, regulatory pushback may be forthcoming.
There is currently an underlying feeling to buy the drop after the SEC’s settlement with Kraken dealt the cryptocurrency sector a blow.
Invest In The Dip Sentiment
As worries about a potential price drop increase, there is currently an underlying attitude of buying the dip. In the near future, there might be resistance to the regulatory push, though, given the favourable situation with rising cryptocurrency values seen in January 2023. Additionally, Ethereum (ETH) traders were expecting a large gain in the wake of the March 2023 Shanghai upgrade.
On the other hand, more regulation of cryptocurrency exchanges may lead to traders favouring investments in Bitcoin, which is well-known for defying regulation. In addition, because the exchange holds a 7.5% ownership in any ETH staked, Kraken’s exit from the staking area may cause concern for many customers.