Bitcoin Rises to $27,000 Despite SEC Crackdown, Causing Over $90M in Liquidations
Bitcoin has defied the odds and surged by 4.5% despite two high-profile lawsuits from the U.S. Securities and Exchange Commission (SEC) targeting Coinbase and Binance, two of the largest cryptocurrency exchanges in the world. While this news has triggered over $90 million in liquidations across the market, mostly consisting of shorts, Bitcoin appears to be leaving short traders in the dust.
According to data from Coinglass, $61.5 million in short trades have been cleared over the past 24 hours, alongside $32.4 million in long trades. Bitcoin is currently trading at $27,146.
Interestingly, while Bitcoin's rally following Coinbase's legal challenge from the SEC stands in stark contrast to its descent following the SEC's Binance lawsuit on Monday, small BTC addresses (<1 BTC) accumulated 2,545 BTC on Monday, indicating that some investors may have bought the dip.
By comparison, BNB and ADA posted relatively modest gains - two cryptocurrencies that were directly targeted in the Binance and Coinbase lawsuits, respectively.
The fact that Bitcoin has not only weathered the storm but managed to increase in value suggests that investors are confident in its long-term prospects. However, it remains to be seen how the SEC's crackdown will affect the wider cryptocurrency market and whether other digital assets will experience similar volatility.
Regardless, the recent events highlight the need for greater regulatory clarity in the cryptocurrency industry. As more governments and regulators seek to enforce securities laws on digital assets, industry players will need to work together to find solutions that balance innovation and investor protection.