If US regulators aimed to crush the crypto markets and generate losses by instilling fear in investors, they are achieving their goal.
Cryptocurrency markets have lost $55 billion, or about 5%, since the Securities and Exchange Commission sued Binance for violating securities laws.
As a result, total capitalization fell to $1.13 trillion, its lowest level since mid-March.
Increase in crypto liquidations
According at CoinGlass, there have been over $270 million in long positions liquidated in the past 12 hours or so. Additionally, $24.8 million in short positions were liquidated in the crypto market rout.
In the past 24 hours, a total of 116,630 traders have been destroyed, with total liquidations amounting to nearly $300 million. Binance only saw $2.89 million in liquidations, but it tops the list for centralized derivatives exchange liquidations.
Former BitMEX CEO Arthur Hayes was not indifferent, saying risky markets were jittery because of the TGA (US Treasury General Account) top-up, not Binance FUD.
The market is down on some binance FUD. But whatever the catalyst, the risk mrkts r on edge cause of TGA recharge. By the end of the summer, the mrkt will pass beyond this and over the lg amt of the silver print buzzing in the background. I have some shitcoins to buy in the meantime pic.twitter.com/w52QABpgvJ
—Arthur Hayes (@CryptoHayes) June 6, 2023
According at Glassnode, Binance has yet to see any major exits, with around 10,000 BTC leaving the exchange. This equates to a roughly 1.5% drop in Binance’s balance, according to the analytics provider.
Altcoins gain weight
Bitcoin is down 4.8% in the past 12 hours or so to trade at $25,754 at the time of writing. A decline of this magnitude is fairly typical for BTC, but it may appear more severe as markets have been extremely quiet lately. Additionally, BTC is still within its bounded channel, but is now teetering on the lower boundaries of it.
Ethereum lost only 3.8% and remains above $1,800, which is well within its side channel. However, the same cannot be said for altcoins.
As expected, Binance Coin BNB deteriorated, losing 9% to $276, its lowest price since March 12.
The SEC has also labeled a large chunk of crypto assets as securities, and they were also hit hard today. In addition to BNB, these include Cardano (ADA), down 7%, Solana (SOL), down 8%, and Polygon (MATIC), down 6.6%.
Algorand (ALGO), Cosmos (ATOM), Filecoin (FIL), Sandbox (SAND), Decentraland (MANA) and Axie Infinity (AXS) are others tarred with the same title brush.
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