A bearish trend formation has been pressuring cryptocurrency prices for the past eight weeks, driving the total market capitalization to its lowest level in more than two months at $1.06 trillion, a 2.4% decline between June 4 and June 11.
This time, the move wasn’t driven by Bitcoin (BTC), as the leading cryptocurrency gained 0.8% during the seven-day period. The negative pressure came from a handful of altcoins that plunged over 15%, including BNB (BNB), Cardano (ADA), Solana (SOL), Polygon (MATIC) and Polkadot (DOT).
Total crypto market cap in USD, 1-day. Source: TradingView
Notice that the downtrend initiated in mid-April has tested the support level in multiple instances, indicating that an eventual break to the upside would require extra effort from the bulls.
The United States Securities and Exchange Commission tagged multiple altcoins as securities in separate lawsuits filed last week against crypto exchanges Binance and Coinbase.
Despite the worsening crypto regulatory environment, two derivatives metrics indicate that bulls are not yet throwing in the towel but will likely have a hard time breaking the bearish price formation to the upside.
Crypto exchanges are under severe constraints in the U.S.
Binance.US announced on June 9 the upcoming suspension of U.S. dollar deposits and withdrawal channels, besides delisting USD trading pairs. The exchange added that it plans to transition to a crypto-only exchange but maintains a 1:1 ratio for customer assets. The SEC issued an emergency order on June 6 to freeze the assets of Binance.US.
Also on June 9, the Crypto.com exchange announced it would no longer service institutional clients in the United States. Although the Singapore-based company alleged a lack of client demand, the curious timing matching the recent actions against Coinbase and Binance has raised suspicions, as pictured by UtilizeWeb3 founder CryptoTea.
The SEC will likely sue Crypto .com
they sued Coinbase and Binance for selling securities
specifically naming Solana, Cardano, Sandbox, Matic, CHZ, BNB, Mana, Algo and more
crypto .com also sells ALL of these cryptos
plus they launched their own CRO…