• The US Securities and Exchange Commission (SEC) has filed a lawsuit against the leading cryptocurrency exchange Binance for allegedly listing unregistered security assets.
• The market has reacted negatively to this news, resulting in a drop of Bitcoin’s price and over $111 million being liquidated within the last 24 hours.
• Despite this temporary downturn, the long-term outlook for cryptocurrencies remains bullish due to friendly policies from other markets, such as Europe.
SEC Filing Lawsuit Against Binance
The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the leading cryptocurrency exchange by daily traded volume, claiming that it violated US securities law by listing unregistered security assets, including Cardano (ADA), Polygon (MATIC), and SAND. Coinpedia has reported all the details on this issue.
Market Turmoil Triggered By SEC Lawsuit
The entire cryptocurrency market has been impacted by this downturn triggered by the SEC’s lawsuit against Binance. After several weeks of consolidating around $27k, Bitcoin’s price experienced heightened bearish sentiment resulting in over $111 million being liquidated within the last 24 hours.
Technical Analysis Points To Bitcoin Dip
From a technical standpoint, the recent Bitcoin dip was not surprising when considering higher time frames. The price of Bitcoin had issued several red warnings of an imminent drop but there were no major fundamental aspects to support the bears in their quest. Market trader Jason Pizzino suggests that despite Bitcoin’s dominance declining from recent highs of around 48 percent, altcoin industry will continue to suffer in light of this news.
Possibility Of A Rebound?
In terms of short-term perspective Pizzino notes that the Bitcoin price could continue dropping toward next significant support level which is around $24k; however for scalp traders he believes that a short-term rebound may occur after hitting $24k mark.
Increasing FUD In American Crypto Markets
The recent bearish sentiment in crypto market has amplified fear and uncertainty among industry participants due to SEC’s lawsuit against Binance which further added to overall unease; however despite these temporary downtrends long-term outlook towards cryptocurrencies remain bullish due its friendly policies from other markets including Europe .