Benzinga - Major cryptocurrencies took a turn for the worse on Wednesday evening as concerns related to Binance and Coinbase Global Inc (NASDAQ:COIN) continued to linger.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | -2.32% | $26,459 |
| Ethereum (CRYPTO: ETH) | -2.18% | $1,839 |
| Dogecoin (CRYPTO: DOGE) | -2.68% | $0.067 |
What Happened: This decline affected various altcoins, including those mentioned and unmentioned in the Securities and Exchange (SEC) lawsuits against Binance and Coinbase earlier this week.
Despite BTC having reached a high of $27,200 on Tuesday, it appears as though investors had already anticipated the regulatory challenges faced by the industry.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Stacks | +5.99% | $0.66 |
| XDC Network | +2.73% | $0.034 |
| EOS | +0.38% | $0.88 |
At the time of writing, the global crypto market capitalization stood at $1.10 trillion, a decrease of 2.43% over the last day.
On Wednesday, the S&P 500 and Nasdaq Composite closed on a lower note, with the former hovering near the highest closing levels witnessed since August 2022. While the S&P 500 declined by 0.38%, the Nasdaq Composite saw a decline of 1.29%.
See More: Best Crypto Day Trading Strategies
Analyst Notes: "Bitcoin is still holding onto the range low, but the price action is simply disgusting. Needs to hold above $26,100 to avoid a cascade," said Michaël van de Poppe.
#Bitcoin is still holding onto the range low, but the price action is simply disgusting.Needs to hold above $26,100 to avoid a cascade. pic.twitter.com/HbWBgREkyK
— Michaël van de Poppe (@CryptoMichNL) June 7, 2023
Bitcoin experienced a notable dip on Monday which has provided an opportunity for bulls to acquire the top cryptocurrency by market cap at discounted prices, according to crypto trader Tone Vays.
According to the trader, investors got spooked by the news that the SEC is suing crypto exchange Binance and its CEO, Changpeng Zhao. "I still think this is a good buy-the-dip situation. This drop was a news-related event, and people just panicked a little bit because the SEC has joined the case."
Pseudonymous trader Kaleo believes that non-fungible tokens (NFTs) hold a bullish outlook due to the current lack of regulatory scrutiny on the sector.
"One of the reasons I'm most bullish about the NFT space heading into the next bull cycle is that it currently has the least amount of regulatory scrutiny up against it.”
The trader contends that NFTs have the advantage of being easily comprehensible to the general public, which makes them more likely to be adopted by a larger audience."NFTs also have the lowest intuitive barrier to entry for the average person – meaning, people understand the idea of digital collectibles. It makes sense to them a heck of a lot more than buying some random dog coin and praying," he adds.
Santiment, an on-chain analytics firm, reported a significant surge in trading volume across the market since the Monday dip. The dip triggered a renewed interest in both dip buys and panic sells. "With Bitcoin and Ethereum at month-high volume levels, you can expect higher than usual volatility," the firm noted.