Crypto Week Ahead: Market Still Recovering From US SEC Crackdown, Sideways Trading Expected To Continue

Over the past seven days, Bitcoin (BTC) price achieved a high of $26,721.27.

BTC dominance, at the time of writing, stood at 48.12 percent. ( Image Source :vjkombajn/Pixabay )

A couple of weeks ago, the US Securities and Exchange Commission (SEC) intensified its crackdown on crypto majors Coinbase and Binance with back-to-back lawsuits over the trading of unregistered securities. Days later, it appears that the overall crypto market is still struggling to recover from that, and most top coins are trading sideways and are expected to continue doing so in the coming few days. Bitcoin (BTC), despite some gains, is yet to breach the $27,000 mark again. Same goes for Ethereum (ETH), which still remains below the $1,800 mark. 

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (June 12), the overall crypto market cap stood at $1.05 trillion. BTC price stood at around $25,800, ETH price stood at around $1,730. 

A week later, the overall market cap managed to see some gains and rose to $1.07 trillion.

DeFi's total volume stands at $1.4 billion, at 6.74 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $19.16 billion, at 92.54 percent of the total 24-hour market volume.

BTC dominance, at the time of writing, stood at 48.12 percent.

Over the past seven days, Bitcoin achieved a high of $26,721.27 (on June 17) and a low of $24,854.23 (June 15), showing signs of a slow streak.

Ethereum, on the other hand, saw a high of $1,891.04 (June 7) and a low of $1,759.48 (June 13).

Crypto Events To Note

Despite ongoing US SEC probes, Coinbase recently announced a rewards programme for its global customers. Users can now earn a 4 percent reward on USD Coin (USDC), a stablecoin that is designed to maintain a value pegged to the US dollar. This stablecoin is backed by reserve assets, including cash, which are held in accounts with financial institutions regulated in the US.

According to reports, Binance.US, the US affiliate of Binance, has recently undergone a series of staff reductions. These layoffs are said to be a response to regulatory charges and asset freeze requests made by the Securities and Exchange Commission (SEC). Approximately 50 individuals have been affected by the layoffs, primarily from the legal, compliance, and risk departments. Binance.US has chosen not to comment or provide any response regarding these reports. The SEC has accused Binance and its CEO, Changpeng Zhao, of utilising Binance.US as a method to evade securities laws, resulting in a lawsuit filed against the exchange.

Bakkt, a digital assets platform based in New York, has recently decided to delist three major cryptocurrencies: Solana, Polygon, and Cardano. This decision follows Bakkt's acquisition of Apex Crypto, a trading infrastructure provider, for a sum of $155 million. Marc D'Annunzio, Bakkt's General Counsel and Secretary, revealed to Fortune that the company has chosen a proactive approach and will await "further clarity on how to compliantly offer a more extensive list of coins. Bakkt's decision is influenced by the ongoing lawsuits initiated by the US Securities and Exchange Commission (SEC) against prominent cryptocurrency exchanges such as Binance and Coinbase.

OKCoin, a cryptocurrency exchange, has been accused by the Federal Deposit Insurance Corporation (FDIC) of disseminating false and misleading information pertaining to its insured status. The FDIC, an agency responsible for overseeing U.S. banking, has issued a cease-and-desist letter to OKCoin, urging the immediate rectification of these claims. As per the FDIC's letter, OKCoin and its senior executives have violated section 18(a)(4) of the Federal Deposit Insurance Act by making statements that falsely suggest OKCoin is FDIC-insured and that funds deposited with the exchange enjoy FDIC insurance coverage. These misleading claims include assertions about FDIC insurance extending to non-deposit products, implying that the FDIC has endorsed a specific blockchain, and failing to distinguish between U.S. dollar deposits and crypto assets.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “Bitcoin maintained a strong position above the $26,400 mark throughout the weekend, showing resilience after a volatile week. During this period, BTC traded within a narrow range, finding support at the $26,300 level and facing resistance near $26,600. The inability of bearish traders to keep BTC below $25,000 likely attracted optimistic investors looking to spur a market recovery. As we approach the end of the month, it is more probable to observe a consolidation phase within the range of $26,000 to $27,000 for Bitcoin.”

WazirX Vice President Rajagopal Menon offered his take, “With the consumer price index data being released, the market saw movement of Bitcoin until it steadied based on update on no further US Fed rate hikes. Digital asset companies delist tokens with uncategorised status.” 

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.