If American regulators were aiming to crash crypto markets and generate losses by instilling fear in investors, they are achieving their goal.
Cryptocurrency markets have shed $55 billion or around 5% since the Securities and Exchange Commission sued Binance for violating securities laws.
As a result, total capitalization has dropped to $1.13 trillion, its lowest level since mid-March.
Crypto Liquidations Surge
According to CoinGlass, there have been over $270 million in long positions liquidated over the past 12 hours or so. Additionally, $24.8 million short positions were liquidated in the crypto market rout.
In the past 24 hours, a total of 116,630 traders were wrecked, with the total liquidations coming in at almost $300 million. Binance has only seen $2.89 million in liquidations, but it tops the list for centralized exchange derivatives liquidations.
The market is down on some binance FUD. But regardless of the catalyst, risk mrkts r on edge cause of the TGA refill. By end of summer the mrkt will move past that and onto the lg amt of money printing humming along in the background. I have a few shitcoins to buy in the meantime pic.twitter.com/w52QABpgvJ
— Arthur Hayes (@CryptoHayes) June 6, 2023
According to Glassnode, Binance has yet to see major outflows, with around 10,000 BTC leaving the exchange. This equates to around a 1.5% decline in Binance’s balance, according to the analytics provider.
Altcoins Taking The Brunt
Bitcoin has retreated 4.8% over the past 12 hours or so to trade at $25,754 at the time of writing. A decline of this magnitude is pretty typical for BTC, but it may seem more severe since markets have been extremely quiet lately. Furthermore, BTC is still within its range-bound channel but is teetering on the lower bounds of it now.
Ethereum has only lost 3.8% and remains above $1,800, which is well within its sideways channel. The same cannot be said for altcoins, however.
As expected, Binance Coin BNB has come off the worse, dumping 9% in a fall to $276, its lowest price since March 12.
The SEC also labeled a large swathe of crypto assets as securities, and they have also been hit hard today. In addition to BNB, these include Cardano (ADA), down 7%, Solana (SOL), down 8%, and Polygon (MATIC), down 6.6%.
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