We tell how the most capitalized cryptocurrency – bitcoin (BTC) – can react to the recognition of other coins as securities
What is wrong with the status of cryptocurrency
In 2023, the issue of the legal status of cryptocurrencies has become the focus of attention. According to one of the main industry regulators, the US Securities and Exchange Commission (SEC), all coins, with the exception of bitcoin, are securities. BTC, at the same time, are confident in the Commission – a commodity.
Experts interviewed by BeInCrypto believe that the recognition of cryptocurrencies as securities will lead to serious consequences for the market. But what exactly will happen to bitcoin is not clear.
The editors of BeInCrypto decided to find out exactly how BTC might react to the recognition of other cryptocurrencies as securities. Experts helped us to understand the issue again.
How Bitcoin will react to the recognition of other cryptocurrencies as securities
Cresco Finance asset manager Artem Ibragimov believes that the reaction of bitcoin to the recognition of other cryptocurrencies as securities can be unpredictable.
“Bitcoin can both lose most of its capitalization and increase it. An increase in its capitalization may occur due to the overflow of money from alts (which are recognized as securities) into bitcoin. In the event of a massive exodus of investors from crypto amid tightening regulation, BTC, on the contrary, risks losing part of its capitalization,” our interlocutor explained his point of view.
Dmitry Noskov, an expert at the StormGain crypto exchange, also shared his opinion with the editors of BeInCrypto. In his opinion, the pressure of regulators on altcoins will lead to an increase in the capitalization of bitcoin, “since in this case, investors will have no choice but to transfer money to BTC.”
Nikolai Zhuravlev, CEO of CFA.RF, in turn, believes that Bitcoin’s reaction to the recognition of other cryptocurrencies as securities will depend on the details of the SEC’s actions.
“If the regulator starts to put pressure on altcoin issuers, this may have an impact on the volatility of bitcoin. The fact is that BTC and altcoins have related markets, so changes in one can affect the other. For example, if the regulator decides to limit the issuance of altcoins, this will most likely lead to a decrease in the number of new cryptocurrencies on the market, which will provoke an increase in demand for bitcoin and an increase in its price. On the other hand, the regulator may restrict the use of bitcoin and other cryptocurrencies in general. In this case, the price of bitcoin risks falling, since the restriction of the use of cryptocurrencies can lead to a decrease in demand for them, ”our interlocutor explained his point of view.
At the same time, Nikolai Zhuravlev drew attention to the fact that cryptocurrencies are decentralized and are not controlled by a single central regulator. This situation, according to our interlocutor, makes the influence of individual regulatory authorities on the digital asset market limited.
Recall that earlier the editors of BeInCrypto collected a bitcoin forecast for March 2023 in one review.
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