Crypto Markets Roar as BTC and ETH Gain Dominance
• Altcoins saw significant price declines due to the SEC’s lawsuit against Coinbase and Binance.
• Investors are turning towards Bitcoin and Ethereum as safe havens, leading to increased market dominance for both.
• Despite the prevailing FUD, traders remain interested in Bitcoin as evidenced by increasing open interest and HODLing.
SEC’s Lawsuit Impacts Altcoin Prices
The SEC’s lawsuit against Coinbase and Binance has caused widespread FUD in the crypto markets, resulting in significant price declines for altcoins such as Solana [SOL], Cardano [ADA], and Polygon [MATIC]. As investors seek a safe haven for their funds, Bitcoin [BTC] and Ethereum [ETH] have seen an increase in dominance, with the two cryptocurrencies collectively holding a 91.4% share of the overall crypto market.
Growing Interest In Bitcoin
An indicator of growing investor interest in Bitcoin is the rising number of addresses holding more than 1 BTC coin. According to Glassnode data, there has been a five-year high of 7,749,322.716 BTC coins being held by investors. Additionally, whale accumulation has also been on the rise with increasing numbers of whales entering into long-term positions in BTC. There has also been an increase in open interest among traders as evidenced by equal numbers of long and short positions placed across multiple exchanges.
Traders Remain Optimistic Towards Ethereum
Despite the SEC’s actions impacting altcoin prices negatively, traders remain optimistic towards Ethereum’s future prospects. CryptoQuants data revealed that while SEC-designated securities continued to witness substantial price declines compared to BTC and ETH, investors showed more optimism towards ETH over other altcoins during this period.
Implications For The Crypto Market
The SEC’s lawsuit against Coinbase and Binance has had far reaching implications for the crypto markets as it created uncertainty around which cryptocurrencies will be classified as securities or not going forward. This could impact projects who have issued tokens without registering them with regulators thus far or might be planning a public offering soon through an Initial Coin Offering (ICO). It remains to be seen how this legal limbo will affect these projects going forward but what is certain is that it will lead to higher regulatory compliance from projects launching new tokens or raising money through ICOs from now on.
Altcoins were impacted heavily due to the SEC’s recent actions but investors seem confident that both Bitcoin and Ethereum will prevail despite these headwinds given their established track record and strong fundamentals backing them up. While these two cryptocurrencies continue to dominate the markets currently, it remains unclear how regulations imposed on other coins might shape up over time but one thing is certain – higher regulatory compliance will become mandatory from here onwards when issuing new tokens or raising money through ICOs