The cryptocurrency market is trying to pick itself up after yesterday's wave of sell-offs that broke Bitcoin's sideways trend and caused steep declines. The U.S. Securities and Exchange Commission has slammed the Binance exchange and maintains that many cryptocurrencies pass the so-called Howey test, meeting the conditions for securities.
- The Binance exchange is defending itself against the SEC's accusations and points out that the US regulator has not sufficiently analyzed its operations and is hindering constructive communication;
- Berenberg analysts point out that Coinbase (COIN.US), the largest U.S. exchange, could also potentially face further regulatory problems.
Ripple hopes to win with SEC by end of September 2023
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Create account Try a demo Download mobile app Download mobile appA potential positive (or negative) catalyst for the industry could be Ripple's upcoming lawsuit against the SEC. A victory for Ripple would go a long way toward alleviating market concerns over the regulator's intentions to bring the crypto sector under its own regulations citing, among other things, 'incomplete' (outside of Bitcoin) decentralization. The SEC's own lineup of policymakers is sharply divided on the cryptocurrency issue.
- John Deaton, the lead attorney for the Ripple fintech, estimates the chances of an SEC win at 3% versus 25% for a total Ripple victory in court and a 50% chance of a favorable outcome for crypto;
- In the past, former SEC chief Hinman has conveyed that cryptocurrencies do not meet the conditions of securities and, with proper decentralization, are closer to commodities - the court is in possession of the full documentation - Deaton pointed to a significant date around mid-June - at which time the documentation is expected to be fully known;
The approximate finality of the Ripple trial continues to drag on, in 2022 the 1st half of 2023 was estimated, recently Ripple's lawyers gave a more distant date. At least until the end of this case, news from the SEC could be a negative factor for Bitcoin and increase uncertainty in the cryptocurrency market
Ripple chart, H1 interval. The price is still below main resistance level at 0,51 USD (SMA200 and 38,2 Fibonacci retracement wave of upward wave started in March 2023. Source: xStation5
Crypto market liquidation map. The drastic sell-off resulted in the liquidation of $289 million worth of buy positions, and the total number of 'liquidated' traders was about 119,000. About $120 million was liquidated in BTC versus more than $40 million for ETH. Source: Coinglass
Downward pressure has continued in the cryptocurrency market since April. To measure it, Glassnode analyzes stablecoin inflows to exchanges (potential buyers) and BTC and ETH inflows (potential sellers). The balance indicates that the market has entered selling pressure after a great Q1 buying spree. BTCand ETH inflows surpassed stablecoin inflows (the most commonly used cryptocurrencies for purchase). Source: Glassnode
The SEC, the main regulator of the U.S. securities market, is taking a clear dislike to the cryptocurrency sector. Prior to yesterday's news, on-chain data had already confirmed an increasing amount of BTC supply on the Asian side while breaking the dominance of US investors. Hong-Kong is mentioned as a potential Asian hub for the decentralized market, which is working to create transparent rules for the industry. Source: Glassnode
The price of the APECOIN 'meme' cryptocurrency unexpectedly managed to erase almost completely yesterday's declines and is gaining more than 11%. Source: xStation5 
BINANCECOIN is trying to stop the selling wave. The price has settled below the June 2022 trendline and the SMA200 (red line). Potential support may be located at the 61.8 Fibo retracement of the upward wave from the summer of 2022, at the $300 level. Source: xStation5 
Bitcoin chart, D1 interval. The price has fallen below the 38.2 Fibonacci retracement of the upward wave from early March and is roughly halfway to 61.8 at $24,000. At the same time, the RSI indicator shows 25 points - an extreme oversold indicator, which may precede a possible rebound. Source: xStation5
