Bitcoin (BTC) hit a three-month low through June 10 as altcoins in particular suffered from US regulatory pressure.
BTC/USD 1 hour candlestick chart on Bitstamp. Source: TradingView
Altcoin bloodbath as exchanges reshape the landscape
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $25,483 on the day, down more than $1,200 from the previous day’s high.
While Bitcoin showed weakness, it was spared the fate of the major altcoins, which reacted violently to the delisting that accompanied US legal action against major exchanges.
Trading app Robinhood announced it will end support for several cryptocurrencies named in the Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase.
It has subsequently declined, with both Cardano (ADA) and Solana (SOL) down almost 25% over a 24-hour period at the time of writing.
“We regularly review the cryptocurrencies that we offer on Robinhood,” the company stated on its website.
“Based on our last review, we have decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023 at 6:59 p.m. ET.”
ADA/USD 1-day candlestick chart (Coinbase). Source: TradingView
“As expected, following this week’s action on the regulatory front, we saw some delistings that led to a market sell-off,” said Kris Marszalek, CEO of Crypto.com. answered.
“I think we’re in the ‘then they fight you’ phase of crypto adoption. Make no mistake: the crypto industry will get through this and come out stronger.”
Crypto.com confirmed that it will be shutting down its US institutional trading service effective June 21.
BTC price 200-week trendline support is failing
The events had a major impact on the total capitalization of the cryptocurrency market. Michaël van de Poppe, founder and CEO of retail company Eight, warned that worse could lie ahead.
Related: Bitcoin and Ethereum set to shrug off ‘toothless adversary’ SEC as FOMC looms
If the total cryptocurrency capitalization loses its 200-week moving average (MA) like BTC/USD, it would be a clear downside signal. Bitcoin’s moving average trend line is currently around $26,400.
“This is not the weekly candle you would want for the total cryptocurrency market cap,” he said told Twitter followers next to a chart.
“The loss of the 200-week MA calls for a continuation of the downtrend.”
Annotated Crypto Market Cap chart. Source: Michael van de Poppe/Twitter
Van de Poppe, like some other popular dealers, however showed interest in altcoin purchases at lower prices.
He was joined by Crypto Tony, who predicted “incredible entries” on the table for 2023.
This #altcoin Drops excite me way too much in Crypto as they really don’t come that often
We have some incredible entries lined up for later this year. I’ll be sharing a few with all of you later today and they’re super realistic. WHO IS READY
— Crypto Tony (@CryptoTony__) June 10, 2023
For existing traders, however, the damage has been done — long liquidations totaled $320 million as of June 10, according to data from CoinGlass, and the day isn’t over yet.
Another $70 million in short positions also evaporated.
Crypto Liquidation Chart (Screenshot). Source: CoinGlass
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This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.