Bitcoin, Ethereum, Dogecoin Dip After Robinhood Gets Wells Notice From SEC — Analyst Says ETHs Weak Fundamentals A 'Roadblock' For King Crypto

Benzinga – Major cryptocurrencies witnessed a drop on Monday as another top cryptocurrency company stared at an enforcement action by U.S. regulators.

What Happened: World’s largest digital asset by market cap, Bitcoin (CRYPTO: BTC), failed to sustain its recent climb to $65,000, falling back to the $63,000 zone.

The price slump liquidated nearly $215 worth of positions in the last 24 hours, with long liquidations accounting for 68% of the total. Notably, Ethereum (CRYPTO: ETH) led the chart with over $67 million in liquidations, followed by Bitcoin at $54.71 million.

The Open Interest in Bitcoin futures slipped 1.68% in the last 24 hours to $30 billion.

The negative sentiment was triggered after brokerage firm Robinhood Markets Inc (NASDAQ:HOOD) revealed that its crypto arm received a Wells Notice from the SEC, a precursor to a likely enforcement action by the regulator.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $2.34 trillion, declining by 1.39% in 24 hours.

Stocks traded higher on Monday. The Dow Jones Industrial Average closed at 38,852.27 points, witnessing an uptick of 1.46%. The S&P 500 rose 1.03% to end the trading session at 5,180.74 points. The tech-heavy Nasdaq Composite spiked 1.19% to 16,349.25 points at the closing bell.

Weaker-than-expected U.S. jobs report from April was catalyzing the market, keeping investors’ hopes high for an interest rate cut by the Federal Reserve.

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Analyst Notes: According to 10x Research, Bitcoin and Ethereum have become highly correlated, with Ethereum’s lackluster performance weighing heavily on the king coin.

“Ethereum’s weak fundamentals are becoming a roadblock for Bitcoin as they prevent broad fiat inflow into the crypto ecosystem.”

What’s going on with #Ethereum? Should we even care?