Bitcoin and Ether rise amid trade swoon after SEC lawsuits against Binance, Coinbase

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Bitcoin prices rose Friday morning in Asia but failed to rise above US$27,000 after a rollercoaster week in crypto markets following lawsuits by US securities regulators against Binance and Coinbase exchanges. The other top 10 non-stable cryptocurrencies gained, with the Polygons Matic token leading the winners.

Top 10 gain ground

Bitcoin gained 1.06% in the past 24 hours to hit US$26,551 as of 7:00 a.m. HK, offsetting some losses earlier this week after the Securities and Exchange Commission (SEC) warned. filed lawsuits against two of the world’s largest exchanges, alleging dozens of the crypto tokens were illegally offered and traded as unregistered securities. The world’s largest crypto by market capitalization is now down 1.26% in the past seven days after steeper declines earlier in the week, according to data from CoinMarketCap.

Ether climbed 1.1% to hit US$1,849 and posted a weekly decline of 0.98%.

Polygons MATIC was the biggest gainer in the top 10, rising 2.69%, but lost 12.02% in value last week.

Binances BNB has gained 2.01% in the past 24 hours, the second biggest gainer in the top 10, but is a big loser for the week, down 13.9%.

Total cryptocurrency market capitalization edged up 0.35% to US$1.1 trillion in the 24 hours to 8:30 a.m. HK, while daily trading volume fell 35%. .3% to US$25.9 billion, according to data from CoinMarketCap.

In a new court filing on Wednesday, the SEC said transactions involving billions of dollars in customer funds passed through the now-defunct Silvergate Bank and Signature Bank under accounts allegedly controlled by Binance officials, including the general manager Changpeng Zhao.

Sachin Verma, an accountant employed by the SEC, said in the filing that some of the funds were transferred to accounts believed to belong to offshore companies linked to Zhao and Binance, in various regions, including the Seychelles, the Lithuania and Kazakhstan.

The story continues

Zhao tweeted Thursday that this was simply untrue in response to a CoinDesk post that said $12 billion in funds had been sent to Zhao, citing Wednesday’s filing.

To my knowledge, Binance.US had a total of around $2 billion in user funds. This number in USD equivalent fluctuates quite a bit as crypto prices change. And declining as users pull back due to recent news, Zhao tweeted. All user funds are accounted for and have never left the Binance.US platform (unless users opt out of course), ever.

Gordon Grant, co-head of trading at crypto broker Genesis Trading, said that this week, sweeping regulatory statements saw the volatility realized by the crypto begin to surface.

After months of seeming to wrap themselves in harrowing, reptilian price action, Monday and Tuesday’s successive tandem on the back of Binance and Coinbase’s headlines anticipated dismay, head-scratching, and, at the very least, some acknowledgment. that the asset class usually remains prone to grim deviations in price action, Grant said.

In an email, Le Shi, head of trading at Auros, a crypto market-making and algorithmic trading firm, said cryptocurrency trading volumes continue to plunge to the depths last seen in the past. middle of the last crypto bear market.

CoinShares, a European crypto investment firm, said in a report shared with Forkast on Thursday that while the SEC lawsuits appear to have more serious implications for Binance, the potential impact on Coinbase and the crypto industry in the broad sense is important.

The charges insinuate that a majority of crypto assets should be classified as securities, which would radically alter the regulatory landscape, potentially limiting access to regulated Wall Street entities (assuming they have the appetite once litigation finished), wrote CoinShares.

CoinShares added that this change could potentially place control of the crypto industry within the reach of traditional financial institutions.

NFT sales drop

Indices are indirect measures of the performance of the global NFT market. They are operated by CryptoSlam, a sister company of Forkast.News under the Forkast.Labs umbrella.

In the non-fungible token (NFT) market, the Forkast 500 NFT index fell 1.07% to 3,219.65 within 24 hours of 9:45 a.m. in Hong Kong. The index was down 4.59% for the week.

NFT sales on Ethereum fell 14.4% in the past 24 hours to $13.72 million, and sales on the Bitcoin network fell 9.34% to $3.53 million, according to data from CryptoSlam.

[Its a] difficult market to analyze right now, Yehudah Petscher, NFT strategist at Forkast Labs, the parent company of Forkast.News, said Friday.

On the one hand, I think I see capitulation to negative news, especially once the SEC files lawsuits against projects (NFTs), but at the same time, we see bullish news from projects, art, among others, on an almost daily basis, Petscher added. I don’t think the SEC lawsuits have played a role yet. They should soon.

Recently popular bitcoin ordinals that are not part of an established collection saw the biggest sales in the past 24 hours with a 74.13% increase to $1.54 million.

The Captainz, an Ethereum-based collection, saw a 2.33% increase in sales to $1.12 million, making it the second best-selling collection in the past day, followed by sales $1.11 million daily from the Mythos DMarkets chain.

In another development, crypto exchange Kraken has launched its NFT marketplace in beta with over 250 collections.

Luca Netz, managing director of intellectual property and collection company NFT Pudgy Penguins, is set to launch a Web 3.0 licensing marketplace named Overpass as soon as late June, according to a report published Thursday by media company NFT Now. .

Pudgy Penguins is an Ethereum-based NFT collection of 8,888 unique digital assets. It is the 19th largest collection ever, with over $257 million traded, according to data from CryptoSlam.

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