Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced noticeable declines on Wednesday evening. This downturn was in response to a dismissal request filed by Binance, Binance.US, and its CEO Changpeng Zhao against a Securities and Exchange Commission (SEC) lawsuit.
At 9:30 p.m. EDT, Bitcoin dropped by 1.00%, bringing its value down to $27,019. Ethereum wasn’t far behind, slipping by 1.84% to $1,616. Moreover, Dogecoin faced a decrease of 0.71%, settling at $0.062.
However, amidst this gloomy scenario, some cryptocurrencies, like Immutable, rose by 24.98% to $0.6825. Astar and Aave also recorded gains of 9.53% and 6.16% respectively.
Binance and its U.S. counterpart and Zhao argue that the SEC has not presented adequate evidence to justify their allegations regarding securities-related violations. They further claim that the SEC is overreaching its jurisdiction on digital assets without any definitive legislative guidance from Congress. In its original lawsuit filed in June, the SEC charged Binance and its affiliates with unlawfully listing unregistered securities.
The global crypto market capitalization currently stands at a staggering $1.06 trillion. However, it saw a 0.84% contraction in the last 24 hours. This decline isn’t isolated to cryptocurrencies. Stocks, too, witnessed a downturn on Thursday. The surge in Treasury yields, reaching multiyear highs, significantly impacted stock indexes. Consequently, the S&P 500 slumped by 1.64%, while the Nasdaq Composite and Dow Jones Industrial Average fell by 1.82% and over 370 points respectively.
Crypto analyst Michael Van de Poppe emphasized Bitcoin’s critical position, highlighting the need to sustain its current level. He voiced concerns about Bitcoin’s fate, especially if it slips below the $26,500 mark. Other analysts like Crypto Tony also shared their strategies, hinting at the criticality of the $26,800 mark.
Speculators, however, are in turmoil. Glassnode, a renowned analytics firm, released data suggesting that an overwhelming 97.5% of short-term holders (STHs) are grappling with unrealized losses. Such statistics undeniably highlight the current volatile state of the crypto market and the ensuing panic among traders and investors.