2023-6-7 17:19 |
The crypto industry’s latest blow rocked digital assets’ prices on Monday.
The world’s largest cryptocurrency by market cap, Bitcoin, recently traded hands at around $25,496, down 4.54% over the past 24 hours. The downturn started after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against crypto behemoth Binance, the operating company for Binance.US, and Binance founder and CEO Changpeng “CZ” Zhao on allegations of breaking federal securities rules.
Despite the carnage, recent analysis shows that some major crypto players are buying the dip.
Whales AccumulateBitcoin may have taken a serious hit yesterday, but not every class of crypto investor is dashing to the exit.
The total crypto market capitalization plunged over 3.5% overnight as the SEC sued Binance. Bitcoin had been treading comfortably above the $27,000 level for the better part of last week, but the charges against the leading crypto exchange rekindled fears about industry integrity and the intention of regulators to exert more authority over trading platforms.
The SEC also alleged that a couple of tokens, including the native coins for the Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), and Algorand blockchains (ALGO), Filecoin network (FIL), Cosmos hub (ATOM), Sandbox platform (SAND), Axie infinity (AXS) and Decentraland (MANA) are unregistered securities.
Nonetheless, on-chain data indicate that some larger market participants are scooping up crypto at the dip.
On-chain analytics tool Lookonchain said on Tuesday that Cumberland — a prominent liquidity provider in digital assets — withdrew approximately 67.8 million USDC from Circle and deposited 67.1 million of the stablecoins to U.S.-based digital assets exchange Coinbase.
Crypto Prime brokerage FalconX also acquired 37 million USDC from Circle before sending 29.5 million USDC to Binance. Additionally, as per etherscan, Asian investment firm FBG Capital deposited 44 million USDT to Binance shortly after the news of the SEC lawsuit went public.
Lookonchain also identified a crypto whale that withdrew 703,871 USDC and over 2.5 million USDT from decentralized finance (DeFi) protocol Aave before purchasing $3.35 million worth of ether.
Is This Dip Worth Buying?While the pain that this most recent capitulation has wrought across the market can’t be understated, the one glimmer of hope it offers weary crypto traders is that the worst of the decline could be over as high-net-worth investors are already stepping in to buy the dip.
Nevertheless, regular retail crypto traders should proceed with extreme caution.
When crypto prices plummet as rapidly as they have in the market recently, it can make that token you’ve been eyeing look like a great deal. But old Wall Street experts have a rule of thumb that aptly explains moments like this: “Never try to catch a falling knife.”
This means pro traders could make a buck trading on increased market volatility, but further downside could occur shortly.
Trader Crypto Tony suggests that Bitcoin could see a short-term bounce before a fresh tumble toward the $24,500 region.
“Shed some more profit on my short this morning, but now looking for a relief wave before the final leg down towards $24,500. I anticipate this is the final leg down before we accumulate for pump to come July / August,” he tweeted.
Similar to Notcoin - Blum - Airdrops In 2024
Emerald Crypto (EMD) на Currencies.ru
|
