The delisting of "unregistered securities" tokens from Robinhood's platform has caused a decline in the value of cryptocurrencies today.On June 10, the market for cryptocurrencies lost 7% of its value and went below $1 trillion, following a week that saw the SEC take enforcement action against Binance and Coinbase, the two largest exchanges in the sector. By market capitalization, Bitcoin has lost 3.75% of its value, falling to about $25,500. The second-largest cryptocurrency, Ether, experienced a 6.9% decline to about $1,700, marking its lowest point in two months. However, the SEC lawsuits' "unregistered securities" tokens had some of the worst performance on June 10. Specifically, Cardano, Solana, and Polygon MATIC saw daily declines of 22%, 25%, and 30%, respectively.
A day after Robinhood announced that SOL, ADA, and MATIC would be removed from its online trading platform starting on June 27, claiming "a cloud of uncertainty around these assets" due to the SEC crackdown, the cryptocurrency market began to drop on June 10. Furthermore, Crypto.com stopped offering institutional investment services in the United States. Binance allegedly sold $4.4 billion worth of crypto assets in recent weeks, according to independent analyst Googly, who also noted a significant decline in the exchange's "proof-of-reserves." This may have added to the downward pressure on prices. A co-accused in the SEC lawsuit and the founder of Binance, Changpeng Zhao, denied the allegations. Meanwhile, the Bitcoin price drop caught bullish options traders by surprise liquidating long positions worth over $340 million in just 24 hours, according to Coinglass data.
Tether, the largest stablecoin by market capitalization, has seen its supply rise at the same time that the cryptocurrency market has been declining. However, the market value of certain other prominent stablecoins, such as USD Coin and Binance USD, has declined. Significant cryptocurrency flows generally to Tether addresses support this. According to Santiment statistics, the majority of these Tether addresses are controlled by wealthy investors, or companies that own more above 100,000 USDT. Most significantly, in June, the number of entities holding between $100,000 and $1 billion in USDT has grown. The quantity of addresses with balances more than $1 billion USDT, which can be crypto exchanges, has decreased. However, from a technical standpoint, the crypto market cap has fallen below the 200-week exponential moving average (200-week EMA; the blue wave in the chart below), which increases the likelihood that it will fall in value in 2023.If prices continue to fall below the 200-week EMA, the market cap would likely drop to $875 billion, or 25% below current levels, next. Bulls, however, will counter that the weekly chart depicts an inverse head and shoulders (IH&S) pattern, with a price objective of about $2.23 trillion for 2023–2024—more than twice the current value.#Bitcoin #Cryptocurrency #SEC #Federalreserve #Binance