The largest crypto currency by market capitalization has fallen about 9 per cent this month to lose roughly a quarter of its gains from a January surge

Bitcoin started a new week by dropping 1.4 per cent to trade at nearly $21,640 as concerned investors considered regulatory activity in the stablecoin sector and the upcoming inflation report due on Tuesday.

The biggest crypto currency in terms of market capitalization has dropped nearly 9 per cent this month to shed around a quarter of its gains from a January surge. Some analysts are now forecasting BTC will find support at $20,000 in forthcoming weeks.

Early Monday, the New York Department of Financial Services ordered Paxos to halt minting new Binance USD tokens (BUSD), saying the token was not being administered in a ‘safe and sound’ way. The order resulted in BUSD dropping to 0.9950 cents compared to its rival tether (USDT) on the Binance exchange, according to crypto data firm Kaiko.

Bitcoin (BTC) started dropping at the beginning of February, although its most significant falls have come over the previous week after crypto exchange giant Kraken agreed to stop its staking service in the U.S. and to pay a $30mln fine in a settlement with the U.S. Securities and Exchange Commission (SEC).

BTC had changed hands above $24,000 as recently as Feb. 1. Investors will be focussing on consumer price index (CPI) due Tuesday to see if the U.S. Fed’s monetary policy has helped reduce inflation and to forecast the size of the central bank’s next rate hike. The consumer price index tumbled to 6.5 per cent in December to continue downward momentum that has pleased riskier asset markets. But Fed governors are concerned about over-tightening money supply and casting the economy into a deep recession.

The news flow has been bearish for crypto and you cannot forget about tomorrow’s inflation data that could be hot and spell trouble for risky assets, according to Edward Moya, senior market analyst at foreign exchange market maker Oanda.

If inflation comes in hot, bitcoin could surpass the $20,000 level and aim the $18,500 region, he said.

Ether (ETH) followed a similar pattern, dropping 3.1 per cent over the past 24 hours to trade at $1,490 – ETH’s lowest level in nearly a month.