In the latest development in the cryptocurrency world, the Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, one of the world's largest cryptocurrency exchanges. This move by the CFTC has put bears in control of the market and pushed Bitcoin (BTC) below $27,000.
The impact of this news was felt across the entire cryptocurrency market as it saw net outflows of $40 billion over the last 24 hours. The current market cap now stands at $1.12 trillion - down 3.42% from $1.16 trillion.
During this reporting period, Bitcoin and Ethereum's market cap fell by 4.25% and 2.75%, respectively to $516.82 billion and $210.35 billion except for XRP which didn't see any changes.
This sudden downturn came after CFTC filed a lawsuit against Binance claiming that it allowed US customers to trade derivatives without being registered with them as required by law.
According to experts, this legal action is an indication that regulators are starting to take notice of how digital assets are traded on exchanges around the world.
While Binance has not yet responded publicly to these allegations, its CEO Changpeng Zhao said in a recent tweet that "protecting our users is our top priority" suggesting that they may be working on resolving this issue soon.
However, until then it seems like bears will remain in control of the markets as investors continue to assess these developments and their potential impact on other cryptocurrencies besides Bitcoin (BTC).