Bitcoin (BTC) challenged three-month lows entering June 10, as altcoins in particular felt the heat from US regulatory pressure.
Altcoin carnage as exchanges reshape the landscape
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,483 on the day, down over $1,200 from the previous day̵[ads1]7;s high.
While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to delisting that came with US legal action against major exchanges.
Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the US Securities and Exchange Commission (SEC).
These then bled, with both Cardano (ADA) and Solana (SOL) down almost 25% in 24 hours at the time of writing.
“We regularly review the crypto we offer on Robinhood,” the firm stated on its website.
“Based on our latest review, we have decided to end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27, 2023 at 6:59 PM ET.”
“As expected, after this week’s action on the regulatory front, we saw some delistings that led to a market selloff,” Kris Marszalek, CEO of Crypto.com, answered.
“I guess we’re in the ‘then they’ll fight you’ stage of the crypto adoption curve. Make no mistake: the crypto industry will get through this and emerge stronger than ever.”
Crypto.com confirmed that it would be discontinuing its US institutional trading service effective June 21.
BTC price 200-week trendline support fails
The events had a major impact on the overall cryptocurrency market cap, with Michaël van de Poppe, founder and CEO of trading company Eight, warning that worse could be to come.
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Like BTC/USD, should the total crypto-cap lose its 200-week moving average (MA), this would constitute a clear bearish signal. Bitcoin’s moving average trend line is currently near $26,400.
“This is not the weekly light you want to see on the total market cap of Crypto,” he told Twitter followers next to a chart.
“Losing the 200-week MA calls for a downtrend continuation.”
Van de Poppe, like some other popular traders, nevertheless showed interest in altcoin buy at lower prices.
With him was Crypto Tony, who predicted “incredible entries” on the table for 2023.
For existing traders, however, the damage was done — long liquidations totaled $320 million for June 10, according to CoinGlass data, with the day not yet over.
Another $70 million in short positions also evaporated.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.