The recent Hinman Email controversy has had a significant impact on Ethereum, leading to a sharp selloff in the market. Investors are closely examining the evidence that suggests Ethereum was favored over other cryptocurrencies. In the past 24 hours, Ethereum (ETH) has experienced a decline of approximately 1.2%, dropping to $1,733.13 at the time of writing.
Although the decrease in price may appear mild, it becomes more noteworthy when considering Ethereum’s bullish momentum earlier in the day. Currently, the selloff is gaining momentum, with a total trading volume of $7 billion in the last 24 hours, according to CoinGape price chart data.
The bearish sentiment surrounding Ethereum today can be attributed to its mention as a favored digital currency in the recently released Hinman Emails. According to a report by Coingape, the Emails indicate that the United States Securities and Exchange Commission (SEC) showed a preference for Ethereum over other digital currencies.
In the Hinman Speech, the SEC categorized Ethereum as a non-security, despite its initial coin offering (ICO) launch, similar to XRP. This raises questions about why the regulatory body included Ethereum and Bitcoin (BTC) in the non-security classification but excluded XRP, which was considered a security at the time.
Potential Impact of these Discoveries on Ethereum
Considering Ethereum’s position as the second-largest digital currency by market capitalization, the current selloff appears to be relatively insignificant in terms of its overall valuation.
The ongoing selloff can be considered a knee-jerk reaction from the market. Once investors realize that these documents do not implicate Ethereum beyond the usual disagreements among American regulators, we might witness a market rebalancing.
Experts in the crypto community are closely examining the Hinman documents and making additional discoveries. The lack of clarity from the SEC and other regulatory bodies, as well as the discrepancies between the classifications of Ethereum and XRP, could potentially contribute to the long-awaited market correction.
