- South Korea has suspended all crypto lending services, citing borrower risk.
- The U.S. SEC delayed its decision on XRP ETFs until October 2025.
- Despite recent dips, analysts say Bitcoin and Ethereum could hit $600K and ETH $15.5K by 2026.
The crypto market has been under pressure since last week, with Bitcoin dipping to $114K, Ethereum trading under $4,200, and XRP struggling to hold the $3 mark. That bearish sentiment is extending into today amid a mix of regulatory news and cautious positioning ahead of a key speech from the Federal Reserve.
Bitcoin Sentiment Cools Ahead of Powell’s Speech
Bitcoin futures sentiment has cooled after falling to 36% from a high of 70% earlier this month when the asset peaked at $124,400. At press time, Bitcoin trades near $115K, with short-term sellers still in control.
The market greed index is now at 53, a neutral position suggesting the market has shifted away from euphoria into a holding pattern.
Investors are now waiting for U.S. Federal Reserve Chair Jerome Powell’s upcoming speech, which could set the tone for crypto amid surging hopes of a first rate cut since December 2024 by next month.
Despite a recent correction from its $124,450 peak to around $115,300, analysts believe Bitcoin is gearing up for a massive rally. Analyst AO has compared Bitcoin’s current pattern to gold’s 2006–2020 trajectory, suggesting a similar breakout could send BTC to $600,000 by 2026.
AO’s chart shows Bitcoin consolidating in a wedge similar to gold before its explosive rise, implying a 421% surge is possible. If realized, Bitcoin’s market cap could reach $12 trillion, solidifying its status as “digital gold.”
South Korea Cracks Down on Crypto Lending
Adding to the bearish pressure, in Asia, South Korea’s Financial Services Commission has ordered local crypto exchanges to suspend all lending services. The regulator flagged concerns about borrower risks, noting that more than 13% of loan users have already faced liquidation.
Exchanges that fail to comply will be subject to inspections and penalties. While existing contracts can be extended or repaid, no new loans are permitted until clearer rules are introduced in the coming months.
SEC Postpones the XRP ETF Decision
The U.S. Securities and Exchange Commission has delayed its decision on multiple XRP spot ETF applications until October 2025. In particular, the SEC has postponed its decisions on the CoinShares XRP ETF, the Grayscale XRP Trust, and the 21Shares Core XRP ETF.
While technically a setback, the move keeps approval prospects alive since no further extensions are possible. Pro-XRP lawyer Morgan noted that October could be pivotal for XRP and Ripple, with two major regulatory decisions potentially landing that month. Aside from ETFs, Ripple expects a decision on its banking charter application by then.
Ethereum Still Nears All-Time Highs
Ethereum, which was one of the best-performing assets this month, also dipped notably. After briefly touching $4,700 last week, Ethereum has now dipped to $4,243 at press time, which puts it 13% away from its previous all-time high of $4,868.
Optimism remains high about Ethereum reaching as high as $15,500 by the end of this year. Industry leader Tom Lee expressed this view in a recent commentary.
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Source: https://coinedition.com/why-is-crypto-down-today-btc-korea-xrp-etf/
