Amid the lawsuits filed by Binance and Coinbase, many major crypto assets deemed unregistered securities by the U.S. Securities and Exchange Commission (SEC) plummeted on June 7, leading the decline of altcoins. . Meanwhile, traders seem to consider Bitcoin relatively safe.
Binance Coin (BNB), the native token of Binance Smart Chain, fell 8% in 24 hours to $252, its lowest since early January, according to CoinDesk data. The top 10 crypto assets by market cap, including Cardano (ADA), Polygon (MATIC) and Solana (SOL), also fell by 6% to 8%.
Bitcoin (BTC) outperformed them, dropping 0.9% near $26,500. It has been in the $25,000 to $27,000 range for most of the past week.
Near $1,850, Ethereum (ETH) fell 1.3% over a 24-hour period, roughly matching the overall performance of the cryptocurrency market. The CoinDesk Market Index (CMI) fell 1.1%.
Complaints filed by the SEC on May 5 and 6 included 13 altcoins, which weighed heavily on crypto assets and could discourage US investors from trading.
“Altcoins are under pressure. The SEC has made it clear that they want to make their crypto offerings on major exchanges nearly impossible,” said senior market analyst at Oanda. Edward Moya says.
“Due to the SEC’s judgment that it is a security, traders are abandoning Binance Coin, Cardano, Polygon, and Solana, and some are moving their funds to Bitcoin.”
These crypto assets could fall further, especially if the SEC moves to restrict staking, institutional brokerage nigma Securities said in a market report.
“Cardano, in particular, will be hit hard. Growth over the last four to five years has been largely driven by user staking,” wrote Joe Edwards, head of research at Enigma.
further monetary tightening
Soaring global bond yields are also weighing on the crypto markets as central banks signal further tightening of liquidity, said Oanda’s Moya.
After a four-month hiatus, the Bank of Canada raised interest rates by 0.25% again on the 7th, continuing its quantitative tightening policy. The Reserve Bank of Australia also raised interest rates by 0.25% on the 6th, raising interest rates to the highest level in 11 years. Further increases are expected.
10-year Treasury bonds rose 11 basis points, suggesting investors believe the Federal Reserve will hold rates longer.
“Wall Street appears to fear that the Fed may tighten further, as indicated by the Bank of Canada and the Reserve Bank of Australia this week,” Moya added.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: BNB price change for one week (CoinDesk)
｜Original: BNB Drops to 6-Month Low as ADA, MATIC, SOL Lead Altcoin Tumble