Crypto Market Rebounds to Pre-SEC Lawsuit Levels, Except for Tokens Labeled as “Securities”

The crypto market has experienced a strong rebound in the past 12 hours, recovering from the impact of the SEC’s lawsuits against Binance and Coinbase.

Crypto Market Rebounds to Pre-SEC Lawsuit Levels, Except for Tokens Labeled as “Securities”

As reported by Coin68, the biggest news in the crypto market over the past 48 hours has been the SEC's legal actions against two major crypto exchanges: Binance and Coinbase.

Specifically, on June 5, the SEC accused Binance of trading securities without proper registration, revealing numerous violations in CEO Changpeng Zhao’s management of his personal companies and Binance.US. The SEC also sought a court order to temporarily freeze Binance.US assets.

On the evening of June 6, the SEC filed a similar lawsuit against Coinbase, the largest U.S. crypto exchange, accusing it of illegal securities trading, but without naming specific leaders of the exchange.

The SEC's lawsuits also listed 15 cryptocurrencies as securities, including BNB (BNB), BUSD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Axie Infinity (AXS), Coti (COTI), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), and Nexo (NEXO).

Despite the negative news, the crypto market swiftly shook off the impact and rebounded strongly on the morning of June 7.

Bitcoin, the largest cryptocurrency by market cap, rose to $27,400, approaching levels seen before the June 5 dump. Over the past 24 hours, BTC has recovered nearly 6% from its low of $25,351 on the evening of June 6, the lowest price since mid-March 2023.

BTC/USDT 1-Hour Chart on Binance as of 09:15 AM, June 7, 2023

Similarly, Ethereum rebounded to nearly $1,900 after dropping to $1,778 48 hours earlier.

ETH/USDT 1-Hour Chart on Binance as of 09:15 AM, June 7, 2023

However, big-cap coins like BNB, Solana, and Polygon—identified by the SEC as securities—have been significantly affected and have yet to return to their pre-June 5 levels.

BNB/USDT 1-Hour Chart on Binance as of 09:15 AM, June 7, 2023

SOL/USDT 1-Hour Chart on Binance as of 09:15 AM, June 7, 2023

MATIC/USDT 1-Hour Chart on Binance as of 09:15 AM, June 7, 2023

In the past 12 hours, the market has seen nearly $72 million in liquidations, with 76.5% of these being short positions.

Recent Crypto Liquidation Data (12-Hour Chart) as of 09:15 AM, June 7, 2023

In comparison, the June 5 dump saw approximately $320 million in liquidations across derivatives markets, with over 95% being long positions.

According to Nansen, in the last 24 hours, Binance and Coinbase experienced the highest withdrawal volumes, totaling $1.2 billion and $926 million, respectively. However, both platforms also saw significant deposits during the same period, resulting in net withdrawals of $420 million for Binance and $181 million for Coinbase.

Withdrawal Statistics from Exchanges (on Ethereum Blockchain) as of 09:20 AM, June 7, 2023