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Cryptocurrencies continue downward spiral following SEC charges

Published 08/06/2023, 09:13
Updated 08/06/2023, 09:11
© Reuters Cryptocurrencies continue downward spiral following SEC charges

Proactive Investors - Bitcoin and Ethereum continued their downward spiral with uncertainty expected to continue to weigh on the market.

The largest coin by market cap, Bitcoin, lost 1.3% to US$26,432, while Ethereum shed 1.9% to US$1,839.

“We are certainly far from being out of the woods,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.

“We believe Bitcoin prices are still likely to remain under pressure, and current price action suggests that there are chances that the price may violate the important price support of US$25,000, but we may also see some bargain hunting taking place at that price point,” he added.

Much of the recent panic is attributed to the US Securities and Exchange Commission’s charges against two of the largest crypto exchange platforms, Binance and Coinbase (NASDAQ:COIN).

However, Aslam believes the volatility we are seeing should not be as large or long-term as experienced previously due to the type of people currently invested in the digital coin.

“Retail traders, who were in for the short-term gain, have long been flushed out, and they were very much responsible for the excessive volatility in the markets,” he said.

Among some of the altcoins, Cardano was down 5% to US$0.3265, Solana shed 7.3% to US$18.59 and Dogecoin lose 2.5% to US$0.06777.

Read more on Proactive Investors UK

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Latest comments

The sec only catrs about the digital dollar nothing else. They will do anything to protect it.
*care
it's all about the sec, nothing wrong with cryptocurrency or the exchanges
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