After several weeks of the crypto market trading sideways, bitcoin has finally produced a volatile movement but not in favor of bullish momentum.
Altcoins are also in the red today after the latest SEC lawsuit against cryptocurrency companies.
The major cryptocurrency has been in a tight range around $27,000 for the past few weeks, with only minor fluctuations above and below that level. This prompted some analysts in the chain to warn that there is a possibility of high volatility.
But what happened yesterday, ensured everything. when the US Securities and Exchange Commission announced a lawsuit against Binance. causing BTC to plummet. As the largest cryptocurrency exchange, the development resulted in an immediate price drop for BTC and the rest of the market. Bitcoin dropped over $1,500 in a few hours and plunged to its lowest price since mid-March.
The matter also triggered a panic resulting in the liquidation worth about $300 million, most of which was from "long positions". The price of BTC is now down almost 4% to trade at $25,752.04. Its market capitalization has plunged below $500 billion.
Ethereum is down almost 3% but remains at a trading level of $1,818.85. The rest of the larger-cap alts are also in a vulnerable state. Binance Coin, has fallen 7.32% to trade at $278.58. BNB has fallen to its lowest level in almost three months.
Ripple, Cardano, Dogecoin, Solana, Polygon, Litecoin, Avalanche, and Shiba Inu have all dropped between 5-7%.
The total crypto market saw over $50 billion disappear at one point and is currently under $1.1 trillion.
