Crypto asset (virtual currency) prices fell sharply on the 6th after the US Securities and Exchange Commission (SEC) sued Binance the day before, and Binance followed Coinbase. Despite filing a lawsuit, Bitcoin (BTC) recovered.
Bitcoin has recovered to $27,000 as of this writing, up nearly 6% in 24 hours. It fell to around $25,400 on the previous day, May 5. The SEC’s accusation of violating federal securities laws against Binance prompted investors to sell, already timid after months of market turmoil.
Other crypto-assets have also recovered, albeit to a lesser extent than Bitcoin. Ethereum (ETH) is trading just below $1,900, up about 4.5% over a 24-hour period. Cardano (ADA) and Solana (SOL) plunged over 8% and over 10% the day before, but rose over 1%. Binance Coin (BNB) is also slightly positive. Polygon (MATIC) is down 1%. In the Binance and Coinbase lawsuits, the SEC called several altcoins unregistered securities.
The Coindesk Market Index (CMI), which tracks overall market movements, rose 4.5%.
plus for bitcoin
What is notable about the two lawsuits is that the SEC does not refer to Bitcoin and Ethereum, meaning that the SEC does not consider the two assets to be securities, but rather commodities and commodities. It is a safe material for the house.
Vetle Lunde, a senior analyst at K33 Research, a cryptocurrency research firm, called the plunge in Bitcoin after the Binance lawsuit an overreaction in a market report on June 6.
“Bitcoin is classified as a commodity. Americans can buy Bitcoin through a number of exchanges, exchange traded funds (ETFs), payment apps, etc. Liquidity is further concentrated in Coinbase and Kraken. It’s possible, but this move shouldn’t cause the market to crash by 5%.
In another market report, senior market analyst Edward Moya of trading platform Oanda wrote that the SEC crackdown on altcoins could even benefit bitcoin.
“Bitcoin is shaping up to be the most interesting trade right now. Many investors may abandon most altcoins and stick to what has worked best since the birth of crypto. said Moya.
“The SEC calling Solana, Polygon, Cardano and Binance Coin securities has prompted some traders to abandon their positions on major exchanges, switch their positions to cold wallets, or simply close their positions. and may resume Bitcoin positions.”
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Bitcoin Rallies Above $27K as Crypto Market Shrugs Off SEC Lawsuits Against Binance, Coinbase