{"id":19616,"date":"2023-06-07T17:53:17","date_gmt":"2023-06-07T21:53:17","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/crypto-prices-unlikely-to-see-existential-threat-from-sec-lawsuits-against-coinbase-binance-analysts-say\/"},"modified":"2023-06-07T17:53:19","modified_gmt":"2023-06-07T21:53:19","slug":"crypto-prices-unlikely-to-see-existential-threat-from-sec-lawsuits-against-coinbase-binance-analysts-say","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=19616","title":{"rendered":"Crypto prices unlikely to see \u2018existential\u2019 threat from SEC lawsuits against Coinbase, Binance,\u00a0analysts say\u00a0"},"content":{"rendered":"
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Most major cryptocurrencies extended a decline on Wednesday, after the U.S. Securities and Exchange Commission sued both crypto exchanges Binance and Coinbase in the past two days.\u00a0<\/p>\n

Still, analysts said they don\u2019t expect such regulatory actions to pose \u201cexistential risks\u201d to crypto prices.<\/p>\n

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\u201cMost capital that had to leave crypto is already out,\u201d analysts at AllianceBernstein wrote in a Tuesday note. \u201cShallow liquid crypto markets in the U.S may continue in view of the U.S regulatory environment, but we don\u2019t see this as an existential risk to crypto given the global presence of the industry,\u201d according to the analysts. <\/p>\n

Roughly 90% of crypto trading volume happens outside of the U.S., and \u201cregulation seems to be evolving more favorably in U.K, Europe, and Asia,\u201d the analysts added.\u00a0<\/p>\n

Coinbase
\n COIN,
\n +3.20%<\/bg-quote>
\n and Binance together\u00a0account for 70%<\/a>\u00a0of crypto trade volumes, according to data from Kaiko.\u00a0<\/p>\n

Bitcoin
\n BTCUSD,
\n +0.05%<\/bg-quote>
\n fell about 1% over the past 24 hours to about $26,462 on Wednesday, recouping some losses after it on Tuesday plunged to the lowest level in almost three months. Ether
\n ETHUSD,
\n -0.26%<\/bg-quote>
\n declined 1.3% over the past 24 hours and Binance Coin sank 7.9%, according to CoinDesk data.\u00a0\u00a0<\/p>\n

While crypto prices have been in decline, bitcoin was outperforming most other major cryptocurrencies on Wednesday. Some investors have \u201cfled\u201d to bitcoin from other tokens, seeking safety in the ecosystem, according to Yuya Hasegawa, crypto market analyst at Bitbank.<\/p>\n

Gary Gensler, chairman of the U.S. Securities and Exchange Commission, has repeatedly said bitcoin is the only cryptocurrency he would publicly label as a commodity.\u00a0\u00a0<\/p>\n

In the Coinbase lawsuit, the SEC alleged that several tokens offered on the crypto exchange, such as Solana, Cardano, Polygon and Axie Infinity, are securities, and should fall into the agency\u2019s jurisdiction. <\/p>\n

For now, financial markets, including crypto, seem to be in a \u201cwait and see\u201d mode, ahead of the U.S. May consumer price data due next Tuesday and the Federal Reserve\u2019s interest rate decision due one day after, Hasegawa noted. \u201cWe can expect suppressed volatility in the near term.\u201d<\/p>\n

From the technical perspective, $25,000 would be the most important support level to watch for bitcoin, according to Julius de Kempenaer, senior technical analyst at StockCharts.com. A drop below the level would make bitcoin \u201cvery vulnerable\u201d to more downside price action, he added.<\/p>\n<\/p><\/div>\n<\/div>\n