Following the SEC crackdown on Binance, bitcoin and the broader crypto market immediately tanked. Altcoins are facing a massive correction of 7-8% with Binance BNB suffering the most.
sued by US SEC against crypto giants binance sent shockwaves throughout the cryptocurrency market on Monday, June 5. Over the past 24 hours, bitcoin (B T c) and the broader cryptocurrency market has corrected by more than 4%.
At press time, the price of bitcoin (BTC) is down 4% and is currently trading at $25,778 with a market capitalization of just under $500 billion. With the recent move, bitcoin has lost its most important support at $26,300, and this could drag BTC price towards $23,000.
On-chain data provider Glassnode forward wrote,
“The recent bitcoin move down from $27.3K to $25.8K (-5.8%) saw percent supply drop from 69% to 62.5% (-6.5%) in gains, with 1.26M coins dropped and losses Are.”
- Photo: Glassnode
The world’s largest cryptocurrency has come under selling pressure in the past few weeks after a strong start to 2023. It has already corrected over 15% from its 2023 high of $30,000.
Also, the US raising its debt limit has not helped bitcoin investors much as they await the next FOMC meeting next week, scheduled for June 14. In its recent report, on-chain data provider Glassnode wrote,
“As an increasingly hostile regulatory environment takes shape in the US, capital is flowing out, and the digital asset sector is headed east. Much of this indicates a generally risk-off environment, with capital remaining more liquid.” Concentrated in large companies, and there is a growing preference for stablecoin capital.
Altcoins Are Facing More Correction
Along with bitcoin, altcoins have registered a deep correction. In its lawsuit, the SEC named altcoins such as Binance BNB, Cardano’s ADA, Solana’s SOL, Polygon’s MATIC, Filecoin’s FIL, and Algorand’s ALGO for violating securities laws by trading on the Binance crypto exchange.
Binance BNB coin has faced the most correction and is down 9% in the last 24 hours. All the above mentioned altcoins have also corrected in the range between 5-9% each.
on-chain statistics Dune Analytics shows that crypto exchange Binance saw a massive $635 million net outflow following the SEC lawsuit. It will be interesting to see how strong Binance can stay against regulatory headwinds.
Binance and its flagship CZ have received overwhelming support from industry leaders. Cardano head Charles Hoskinson has called on industry players to unite against the authoritarianism of the SEC and other regulatory bodies.
total market capitalization for #crypto Still holding the 200-week MA and 200-week EMA.
so long as it persists, and given that the last party, #binanceis receiving an attack, we can reach this low level of correction as well. pic.twitter.com/gAY7fig2ns
— Michael van de Poppe (@CryptoMichNL) June 6, 2023
However, investors need not panic immediately. Popular crypto trader and analyst Michael Van de Poppe said that the crypto market still remains above the 200-week moving average (WMA).
Bhushan is a FinTech enthusiast and has a great understanding of the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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