The price of bitcoin has dropped today as a result of litigation filed against Binance and Coinbase, which resulted in $106 million in BTC long liquidations.
The bullish impetus that pushed Bitcoin to a 2023 high of more than $30,000 on April 11 has all but vanished, as a new wave of SEC-led regulatory prosecution against Coinbase has followed the June 5 lawsuit against Binance exchange.
The drop in Bitcoin price follows a market-wide drop, and analysts fear that BTC may hit new year-to-date lows.
Let’s take a closer look at the elements influencing the Bitcoin price right now. The US-led regulatory pressure on cryptocurrency is increasing.
On June 5 and 6, the US Securities and Exchange Commission filed civil actions against Binance and Coinbase, two of the largest centralized cryptocurrency exchanges. The SEC has identified 61 different cryptos worth $100 billion that constitute securities. A coalition of ten U.S. states also served Coinbase with a Show Cause Order. The accusation, like the SEC lawsuits, is that Coinbase violated securities legislation.
While the SEC has previously stated that Bitcoin is not a security, some market analysts are questioning whether the current surge of actions is a renewed attempt to implement the Operation Chokepoint 2.0 strategy, which intends to restrict access to all digital currencies.Bitcoin bulls are wondering if the crypto market and BTC have reached a bottom.
The increased regulatory attention in the United States has resulted in a regional shift in BTC supply. While the United States dominated Bitcoin supply in 2020 and 2021, the pattern has flipped and the price has dropped 11% since mid-2022.