Decentral Block Post

Bitcoin (BTC) challenged three-month lows into June 10 as altcoins in particular felt the heat from United States regulatory pressure.

Altcoin bloodbath as exchanges reshape landscape

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,483 on the day, down over $1,200 from the previous day’s high.

While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to delisting that accompanied U.S. legal action against major exchanges.

Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).

These subsequently hemorrhaged value, with both Cardano (ADA) and Solana (SOL) down nearly 25% in 24 hours at the time of writing.

Real-world asset (RWA) protocols have become a hot trend within decentralized finance (DeFi) circles.

An RWA protocol is a decentralized application that allows entities to tokenize and trade real-world assets. These assets range from stocks and government bonds to real estate and commodities. They are also known as asset tokenization protocols.

DeFi provides certain advantages over TradFi by making the smart contracts transparent and enabling a wide degree of financialization of assets by making them divisible, transferable and tradable on decentralized platforms.

The top uncollateralized lending protocols for institutions, TrueFi and Maple, have increased by 26.6% and 117.8%, respectively, in 2023. Centrifuge, a real-world asset tokenization platform, has surged by 32% year to date.

In comparison, the gains recorded by the DeFi pulse index in the same period were 13%. Glassnode’s index of DeFi blue-chip tokens has lost 7% since the year’s start.

Bitcoin (BTC) remains well above the crucial support at $25,250, indicating that market participants have shrugged off the news of the lawsuit by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase. When markets do not stay lower for long after negative news, it is a sign that traders are looking to buy the dips rather than panic and dump their holdings.

ARK Invest CEO Cathie Wood has been buying the dip in crypto-related stocks since the SEC unleashed its recent crypto regulatory action. First Wood purchased $21 million worth of Coinbase stock on June 6 and followed that up with a purchase of Block Inc. shares worth $19.9 million between June 7 and 8.

The resilience of the cryptocurrency space is supported by a risk on sentiment. The U.S. equities markets are on a roll with the S&P 500 rising above 4,300 on June 9, the first such instance since August 2022.

Can bulls sustain the recovery in the cryptocurrency markets or will higher levels bring out the bears in large numbers? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin turned down from the moving averages on June 7 but a minor positive is that the bulls did not allow the price to slump below $26,125. This suggests that lower levels are attracting buyers.

The United States Securities and Exchange Commission (SEC) is seeking ‘alternative service’ from the U.S. District Court in Washington, D.C., to issue a legal summons to Changpeng Zhao, the CEO of cryptocurrency exchange Binance.

Zhao and Binance were recently sued by the SEC over alleged unregistered securities operations.

Related: SEC sues Coinbase for breaking US securities rules

In a case document filed with the District Court on June 7, the SEC requested alternative service. It explains its evident stance that typical service (which requires the presence and signature of the person being served) might prove difficult in this case:

“Binance and Zhao are not the typical foreign entity and individual, as they are widely known for disagreeing with the premise of a headquarters or domicile, let alone identifying one, and Zhao is famously protective of revealing his whereabouts.”

Bitcoin (BTC) and Ether (ETH) are due volatility — but not thanks to “toothless” United States regulators, new analysis says.

In its latest market update on June 9, trading firm QCP Capital told market participants to gear up for macro-fueled price action for BTC and ETH.

Related: Why is Bitcoin price stuck?

QCP Capital: U.S. crypto "mudslinging" to continue

The dust is continuing to settle on this week’s main macro stories — lawsuits against exchanges Binance and Coinbase from the U.S. Securities and Exchange Commission (SEC).

More upheaval will come in future, QCP believes, as the macro environment from next week onward becomes much more unpredictable.