There is an ongoing u-turn in the price action in the digital currency ecosystem following the release of the Hinman Emails and its possible implications. The market is currently paring off its gains with Ethereum (ETH) now in the spotlight after shedding off about 1.2% of its price to $1,733.13 over the past 24 hours at the time of writing.
While the perceived loss can be said to be mild, it becomes significant when we factor in the fact that ETH has been on a bullish run earlier in the day. The selloff is currently encroaching with total trading volume in the past 24 hours coming in at $7 billion per data from CoinGape price chart.
The bearish sentiment Ethereum is exhibiting today might stem from the mention it got as a favored digital currency in the released Hinman Emails. As reported by Coingape, the Emails show an indication that the United States Securities and Exchange Commission (SEC) favored Ethereum over other digital currencies.
The SEC through the Hinman Speech tagged Ethereum as a non-security even though it was launched through the process of an Initial Coin Offering (ICO) like XRP. The question now lies in why the markets regulator named Ethereum alongside Bitcoin (BTC) but left out XRP in its classification of what was a security at the time.
Will These Discovery Impact Ethereum?
For what it’s worth, Ethereum is the second largest digital currency by market capitalization after Bitcoin and the current hint of selloffs is quite mild to fuel a remarkable dent in the valuation of the asset.
The ongoing selloff can be tagged a knee jerk reaction from the market and as soon as many understand that the documents does not implicate Ethereum beyond the regular dissent among American regulators, we may then record a market rebalancing.
There are additional discoveries being made on the Hinman documents which are being pored on by experts in the crypto community. For many, the only issue is the lack of clarity on the part of the SEC and other regulators and the discrepancies between the tag for Ethereum and XRP might help fuel the long sought correction.