A regulatory crusade against the cryptocurrency industry that has been ongoing this year intensified, sending the value of BTC and the most popular cryptocurrencies down.
The total market cap fell to $1.07 trillion, the lowest level since three months ago, before modestly increasing to $1.1 trillion as of press time. After weeks of being relatively rangebound in recent months, the price of Bitcoin dropped almost to a two-month low.
A number of popular altcoins reported larger losses, raising worries about additional market stress. On-chain statistics showed an optimistic picture despite this, as investors stayed steadfast in the face of considerable regulatory uncertainty.
Over 96% Less Capitulation at the Moment
The US Securities and Exchange Commission (SEC) sued two of the cryptocurrency market’s major participants last week, resulting in millions of dollars in losses from liquidations.
The following day, the SEC charged Coinbase, the sole publicly-listed exchange in the nation, with breaking securities rules after filing 13 allegations against Binance and its CEO, CZ. But Glassnode’s most recent data suggested that market players were becoming more resilient.
The crypto analytic firm claimed that the market had hugely volatile moves in “both directions” as a result of the intensifying regulatory pressure from the United States on Binance and Coinbase, two big cryptocurrency heavyweights.
Nevertheless, the size of “Realized Losses” reported on-chain is still just about $112 million, or $3.05 billion less than the highest known capitulation occurrence.
The Price of Bitcoin Rebounds
Despite the downward pressure, the spot price of Bitcoin maintained its strong support at the previously mentioned important pricing levels. According to Glassnode, continued duration above these crucial levels would continue to be a positive sign for the present trend.
Bitcoin rapidly recovered, reaching about $27k, before dipping a little today. Despite attempts to slow it down by way of a regulatory pathway that has so far lacked clarity, the market’s ability to overcome initial jitters revealed a confident outlook by the players.
On the network side, Bitcoin’s hash rate and difficulty level continued to “hover” close to their respective all-time highs and remained “indifferent” to the regulatory uproar.
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