Today’s price action in the wide world of cryptocurrencies has been broadly negative. Indeed, when the three largest tokens by market capitalization — Bitcoin ( BTC -6.17% ), Ethereum ( ETH -8.31% ) and Binance Coin ( BNB ) — are all down, the market tends to follow suit.
Over the past 24 hours, these large-cap tokens each lost 3.5%, 3%, and 5.1%, respectively, as of 9:30 a.m. ET. Unsurprisingly, the overall crypto market was down 3.6% over the past day, driven largely by these moves.
These three tokens combined approximate roughly two-thirds of the value of the overall crypto market. Accordingly, when this cohort sneezes, other cryptocurrencies tend to catch a cold. Such appears to be the case today.
Today it was reported that Binance has removed its application for a Singapore exchange. Additionally, Binance announced plans to completely remove its trading platform from Singapore by Feb. 13 and focus on other markets. This has proven to be a big blow for Binance and overall sentiment in the crypto space, as various global blockchain hubs continue to crack down on crypto in recent months.
It should be noted that this news follows high-profile regulatory crackdowns in China and India for Bitcoin mining and crypto, in general.
Investors appear to remain on edge with respect to the increasingly hawkish global regulatory environment surrounding the crypto sector. Last week’s Congressional grilling of crypto executives provided the latest regulatory concern, given that the U.S. has been viewed as a relatively safe haven for these digital currencies.
Make no mistake about it — Bitcoin, Ethereum and Binance Coin reflect the broad sentiment of investors in the crypto space. Generally speaking, these top cryptocurrencies are the primary beneficiaries of capital inflows into this sector. Accordingly, those looking at how the crypto market is doing on a given day generally need to take a peek at how these top cryptocurrencies are performing for a relatively decent idea.
There are more than 12,000 cryptocurrencies out there right now, each with its own catalysts and headwinds. However, the headwinds being felt by these three top cryptocurrencies appear to be bleeding into most cryptocurrencies today, with a sea of red forming this morning.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.