Crypto Update: Bitcoin Struggles Below $26,000 After SEC Lawsuits

On June 12, Bitcoin experienced a slight upward movement in trading but remained below the $26,000 level in the Asian market. Other leading cryptocurrencies in the top 10 displayed a mixed performance, with some showing gains while others suffered losses, leading to varied outcomes across the market. During this period, market sentiment was cautious as investors anticipated regulatory actions from the U.S. Securities and Exchange Commission (SEC) that specifically targeted cryptocurrency exchanges. Further, you can visit https://bitbot-app.com

The looming regulatory scrutiny by the SEC has introduced an element of uncertainty in the crypto industry. Market participants are bracing themselves for potential consequences and adjustments resulting from these regulatory actions. This increased regulatory attention further compounds the existing challenges faced by the cryptocurrency market, such as its inherent volatility and concerns about its long-term sustainability and viability. 

Asian and European Markets Gain, U.S. Futures on the Rise

As investors awaited decisions from important central banks like the European Central Bank, the Bank of Japan, and the U.S. Federal Reserve, it looks that Asian equities markets did well on Monday overall. Here is a rundown of the changes in the market:

• The Shenzhen Component Index increased by 0.74% while the Shanghai Composite fell by 0.08%.
• The Hang Seng Index in Hong Kong rose 0.07%.
• The Nikkei 225 in Japan increased by 0.52%.

Furthermore, U.S. stock futures were on the rise as of 7:30 p.m. in Hong Kong. Futures for the S&P 500 rose by 0.28%, the Nasdaq 100 futures gained 0.52%, and futures for the Dow Jones Industrial Average rose by 0.09%.

In terms of forthcoming activities, the United States is due to issue its most recent consumer price index (CPI) data on Tuesday, which is a crucial inflation indicator. Trading Economics predicts that the United States, the largest economy in the world, would see its annual inflation rate drop to 4.1% in May from 4.9% in April and 5% in March, largely as a result of decreased energy costs.

On June 13 and 14, the U.S. Federal Reserve is anticipated to hold interest rates steady at their current levels. Currently, interest rates in the U.S. range between 5% and 5.25%, which is the highest since 2006. This follows ten consecutive interest rate hikes that began in March 2022.

On Monday, increases were also seen on European stock exchanges. The benchmark STOXX 600 increased by 0.31%, and the DAX 40 in Germany increased by 0.73%. The European Central Bank is anticipated to increase its benchmark interest rates by 25 basis points on June 15 and potentially once more in July in response to persistent inflation, according to a Reuters poll of 59 analysts.

Elizabeth Murphy, the investment director of credit at Schroders, highlighted the potential role of corporate bonds in portfolios in the context of higher interest rates set by central banks to control inflation. She noted that different types of credit can be utilized at various stages of the economic cycle.

Bitcoin Inches Up Amidst Regulatory Challenges: Crypto Market Faces Volatility

In the past 24 hours, Bitcoin saw a modest increase of 0.21%, reaching a price of US$25,812, according to CoinMarketCap data. The impact of the U.S. Securities and Exchange Commission’s (SEC) litigation against significant cryptocurrency exchanges Binance and Coinbase, nevertheless, caused the world’s largest cryptocurrency to see a decrease of 3.82% over the past seven days. The second-largest cryptocurrency, Ether, also experienced a decline, falling by 0.97% to US$1,736, or a loss. Over the previous week, it experienced a greater decline of 7.31%. A major loss in the last 24 hours was experienced by BNB, the native token of Binance, which fell 5.5% to US$224 and saw a severe reduction of 25.59% throughout the previous week. Binance and its CEO Changpeng Zhao face charges related to securities violations in the SEC lawsuit, including allegations of unregistered token offerings and unregistered activities.

The SEC’s actions have prompted strong responses from the affected exchanges. A Binance spokesperson criticized the SEC, stating that the regulatory actions fail to consider the negative consequences on users and the industry. Coinbase, which is also facing similar charges from the SEC, expressed its readiness to challenge the regulatory stance in court, highlighting the lack of a clear rulebook and potential adverse implications for the crypto industry. Among the notable performers in the market, Cardano’s ADA and Polygon’s Matic stood out as the top gainers in the past 24 hours. Cardano rose by 6.11% to US$0.2788, despite a weekly loss of 25.72%. Polygon increased by 4.59% to US$0.6292 but faced a decline of 29.13% over the last seven days. Overall, the total crypto market capitalization slightly dropped by 0.25% to US$1.05 trillion, while the total market volume experienced a significant decrease of 21.12% to US$27.29 billion within the past 24 hours.