Bitcoin falls below $59,000: Bitcoin faces multiple pressures!

Bitcoin falls below $59,000 due to inflation concerns and pressure from cryptocurrency regulation. Uniswap's UNI token is the only CoinDesk 20 constituent coin that rose in the past 24 hours. - On Thursday, cryptocurrency prices fell sharply, with Bitcoin leading the decline, down 4%. - The resurgence of inflationary pressures in September initially led to the market decline. - The decline was further exacerbated after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the digital asset market maker Cumberland DRW. Cryptocurrencies continue to face multiple headwinds, with the September inflation report showing accelerating inflation beyond expectations, and additional regulatory actions by the U.S. government also putting pressure on the industry. During the U.S. afternoon trading session, Bitcoin (BTC) fell about 4% in the past 24 hours. Bitcoin's price fell to $59,000, returning to levels not seen since the Federal Reserve unexpectedly cut its benchmark rate by 50 basis points in mid-September. Altcoins performed relatively better, with the CoinDesk 20 cryptocurrency index falling less than 3% over the same period. Ether (ETH) fell 3.5%, while the token (UNI) of the decentralized exchange Uniswap saw positive gains on the day on news of the platform's own Layer-2 plan. The cryptocurrency market was weak at the start of the day due to the U.S. consumer price index report showing unexpected acceleration of inflation in September. This news seems to have dashed the possibility of the Federal Reserve cutting rates by another 50 basis points in November, with some market participants now even doubting whether the Fed will pause its rate-cutting cycle at this meeting. In the afternoon, prices fell further as news spread of the SEC's lawsuit against the major digital asset market maker Cumberland DRW, once again raising concerns about the regulatory environment facing U.S. crypto companies. The SEC alleges that DRW traded crypto assets as unregistered securities sales. Cumberland responded to the lawsuit on X (formerly Twitter), stating "We will not make any changes to our business operations or the assets we provide liquidity for as a result of this SEC action." This SEC lawsuit is the latest regulatory action by the U.S. government against the crypto industry this week. On Wednesday, the U.S. Department of Justice brought market manipulation charges against four market makers and more than a dozen individuals. On the same day, SEC Chair Gary Gensler expressed extreme disdain for the prospect of Bitcoin or cryptocurrencies as a means of payment. He criticized the crypto industry as rife with "scammers," and claimed that the industry's "leading figures" are either already in prison or soon will be.