{"id":19444,"date":"2023-06-07T11:41:36","date_gmt":"2023-06-07T15:41:36","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/bitcoin-price-shrugs-after-sec-moves-why-cryptos-arent-sinking\/"},"modified":"2023-06-07T11:41:37","modified_gmt":"2023-06-07T15:41:37","slug":"bitcoin-price-shrugs-after-sec-moves-why-cryptos-arent-sinking","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=19444","title":{"rendered":"Bitcoin Price Shrugs After SEC Moves. Why Cryptos Aren\u2019t Sinking."},"content":{"rendered":"
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\n Bitcoin
\n and other cryptocurrencies have so far shrugged off a major regulatory crackdown on the digital asset space, with an absence of sellers after more than a year of a brutal bear market helping cryptos rise in the face of intense pressures.<\/p>\n

The price of Bitcoin has jumped 3.5% over the past 24 hours to $26,650, rebounding from depths below $25,500 reached on Tuesday after the Securities and Exchange Commission filed a lawsuit against crypto broker
\n Coinbase Global
\n (ticker: COIN). The largest digital asset steadied as Wednesday trading got underway, returning to the zone between $26,000 and $27,000 that has dominated for weeks since Bitcoin slipped back from a 10-month peak above $30,000 in April.<\/p>\n

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\u201cYesterday\u2019s strong buying has somewhat lowered the temperature of concerns about the near-term outlook for the price. It was back above the 200-week average and within the closing ranges of the last four weeks,\u201d said Alex Kuptsikevich, an analyst at broker FxPro. \u201cNevertheless, a wait-and-see approach now seems more prudent as Bitcoin has yet to prove its ability to gain further strength. A significant bullish signal would be a surpass of $27,500.\u201d<\/p>\n

It is remarkable that Bitcoin has shaken off what looks to be one of the biggest U.S. regulatory crackdowns on crypto, with the SEC charging Binance\u2014by far the world\u2019s largest token exchange\u2014and Coinbase with securities violations this week.<\/p>\n

The latest development came late Tuesday, with an emergency filing from the SEC seeking a temporary restraining order freezing assets held for the benefit of Binance.US customers. Binance.US, ostensibly an independent American crypto exchange, was charged alongside Binance and its founder, Changpeng Zhao, on Monday.<\/p>\n

The move by the SEC is a bid \u201cto ensure that Binance.US customers\u2019 assets are protected and remain in the United States through the resolution of the SEC\u2019s pending litigation of this matter.\u201d Binance.US said via Twitter<\/a> that users assets are safe and that the platform continues to be operate, calling the filing \u201cunwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern.\u201d<\/p>\n

Why haven\u2019t cryptos crashed in the face of these intense regulatory pressures?<\/p>\n

Market observers point to crypto already enduring more than a year of a brutal bear market, which has pushed the space\u2019s market capitalization to $1.1 trillion from nearly $3 trillion. These conditions already likely have pushed out any would-be sellers, leaving only committed capital in the ecosystem. Bitcoin hit its trough below $16,000 in the wake of crypto exchange FTX\u2019s shock bankruptcy last November, which may have been the final capitulation event for traders that might have sold.<\/p>\n

\u201cIt\u2019s hard to overstate how difficult the regulatory climate is in the United States right now, but it seems as though most of the ammunition has been fired off,\u201d said Bob Ras, the co-founder of trading platform Sologenic. \u201cIf Bitcoin can remain as buoyant as it has been during this moment in time in particular, then it\u2019s hard for me to imagine us hitting a new bottom for this four-year cycle. There just aren\u2019t that many sellers left, especially after the wipeouts that occurred in 2022.\u201d<\/p>\n

Beyond Bitcoin,
\n Ether,<\/span>
\n the second-largest crypto, was up 2.5% to above $1,850. Smaller cryptos or altcoins\u2014a class of token that has borne the brunt of much of the latest regulatory scrutiny\u2014were weaker, with
\n Cardano
\n and
\n Polygon
\n dropping 4% each. Memecoins were more mixed, with
\n Dogecoin
\n gaining 3% but
\n Shiba Inu
\n shedding 1%.<\/p>\n

Write to Jack Denton at jack.denton@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n