Crypto market drop liquidates $390M, but Bitcoin price avoids 3-month lows.
Bitcoin (BTC) reached its lowest point in three months on June 10th, as altcoins were particularly affected by regulatory pressure from the United States.
Altcoin bloodbath as exchanges reshape landscape
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $25,483 on that day, dropping over $1,200 from the previous day’s high.
Although Bitcoin showed weakness, it was spared the fate of major altcoins, which reacted strongly to the delisting that accompanied the U.S. legal action against major exchanges.
- Can weekend change crypto investor sentiment?
- MATIC tokens worth millions were sent to Binance and Coinbase before a 30% drop, data reveals.
- Chancer’s new betting platform allows users to create personalized P2P betting markets.
The trading app Robinhood announced that it would stop supporting several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).
Subsequently, both Cardano (ADA) and Solana (SOL) lost nearly 25% of their value in 24 hours at the time of writing.
“We regularly review the cryptocurrencies we offer on Robinhood,” the firm stated on its website.
“Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET.”
“As expected, following this week’s action on the regulatory front, we saw some delistings causing market selloff,” responded Kris Marszalek, CEO of Crypto.com.
“I guess we are in the ‘then they fight you’ stage on the crypto adoption curve. Make no mistake: the crypto industry will go through this and emerge stronger than ever.”
Crypto.com confirmed that it would halt its U.S. institutional trading service beginning June 21.
BTC price 200-week trend line support fails
The events had a major impact on the overall cryptocurrency market cap, with Michaël van de Poppe, founder and CEO of trading firm Eight, warning that worse may be to come.
Related: Bitcoin, Ethereum to shake off ‘toothless adversary’ SEC as FOMC looms
As with BTC/USD, should the total crypto cap tally lose its 200-week moving average (MA), this would constitute a clear bear signal. Bitcoin’s moving average trend line currently stands near $26,400.
“This is not the weekly candle you’d want to see on the total market capitalization for Crypto,” he told Twitter followers alongside a chart.
“Losing the 200-Week MA shouts for downwards continuation on the trend.”
Van de Poppe, like some other popular traders, nonetheless revealed interest in buying altcoins at lower prices.
Accompanying him was Crypto Tony, who predicted “incredible entries” on the table for 2023.
These #Altcoin drops get me way too excited in Crypto as they really do not come by that often Got some incredible entries lined up later this year. I will share a few later today with you all and they are super realistic .. WHO IS READY
— Crypto Tony (@CryptoTony__) June 10, 2023
For existing traders, however, the damage was done — long liquidations totaled $320 million for June 10, according to data from CoinGlass, with the day not yet over.
Another $70 million in short positions also evaporated.
Magazine: Home loans using crypto as collateral: Do the risks outweigh the reward?
