Bitcoin and Ethereum Experience Price Decline as Cryptocurrency Market Faces Volatility
Cryptocurrency market capitalization fell 3.2% over the past 24 hours to $1.021 trillion, its lowest level since mid-March when crypto rallied on concerns over US banks. A reversal is likely now that crypto exchanges have become a target for regulators and the banking system has managed to avoid further high-profile failures.
Bitcoin has pulled back to local resistance levels from August of last year to February of this year. The bulls may try to hold the sell-off near this level, but the current decline is still within the descending channel that has been in place since April. The most significant support for Bitcoin is near the 200-day average, now at $23.6K and aiming higher.
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Michael Saylor, founder of MicroStrategy, says the SEC's attempt to bring regulatory clarity to the cryptocurrency market sets the stage for a new bitcoin rally. He believes that "confusion and anxiety have been holding institutional investors back."
The relatively low realization of profits and losses, coupled with the virtual lack of reaction from holders, suggests that investors are "indifferent" to the SEC's actions against Binance and Coinbase, Glassnode said. The market reaction has maintained Binance's position as one of the largest holders of BTC and ETH.
The head of the US House Financial Services Committee, Republican Patrick McHenry, said that the SEC should have cracked down on the Binance exchange long ago. He said it should have been closed years ago.
Mark Cuban, a billionaire, blamed the SEC for not having a classification system for cryptocurrencies. In such circumstances, the regulator can recognize any token as a security.
Binance CEO Changpeng Zhao has denied rumors of market manipulation to inflate the value of BNB by selling Bitcoin.
