Bitcoin and Dogecoin lead crypto majors’ bounce a day after 8-month liquidations record.
Crypto markets rose on Wednesday despite the recent regulatory issues faced by Binance and blockchain, two of the largest crypto exchanges in terms of trading volumes. This suggests a bullish sentiment for major tokens, with Bitcoin and Dogecoin leading gains among majors with a 5% rise in the past 24 hours. Litecoin, XRP, and Shiba Inu also saw gains of up to 4%, while the total crypto market capitalization rose by 3.3% to $1.12 trillion. The bounce reversed losses for traders after a record liquidation event on Monday, where over $293 million worth of token-tracked futures products were liquidated. Large liquidations can signal the local top or bottom of a steep price move, which may allow traders to position themselves accordingly.
The reversal came as traders likely shook off long-term implications of regulatory troubles for influential exchanges in the U.S, with some tokens being termed as securities. The U.S. SEC charged Binance and blockchain with selling unlicensed securities in the country, despite a lack of regulatory clarity from the SEC on whether crypto tokens can be considered securities. The SEC has not given any official legal definitions to token issuers and is yet to respond to a petition from blockchain seeking clear rulemaking definitions. Some market observers suggested that crypto majors termed as securities in the SEC filings could see near-term turbulence.
Bitcoin and Ether were not explicitly termed as securities by the SEC, which some say strengthened their value proposition. As a result, investors may increasingly shift their capital into Bitcoin as a fundamentally secure, sound, and independent store of value.