- The crypto market recently saw a sudden wipeout in just a span of 24 hours.
- Binance US may be targeted by the SEC next with a lawsuit.
- Tether’s credibility was also attacked by an article from the Wall Street Journal.
Bitcoin (BTC) and most altcoins recently suffered a recent dip that caused a massive shedding of market cap in the last 24 hours.
As in the case of Bitcoin, the crypto wipeout has caused it to drop from $23,500 to $22,000 in just a day, signaling a weakening grip of the bulls in this critical market tug-of-war. At the time of writing, the price has slowly recovered to $22,365.41, according to CoinGecko.
BTC/USDT 1-day chart (source: TradingView)
In the last week, BTC also witnessed strengthening selling pressure, as indicated by the trading volume section of the chart. What is worse, the daily Relative Strength Index (RSI) at 42.9 is showing that BTC has yet to reach the oversold status.
This is the least of the worries of crypto fans today, however.
Binance US Lawsuit Incoming?
During a bankruptcy hearing related to Binance US’ intention to buy Voyager, an official from the Securities and Exchange Commission (SEC) said on record that the American trading arm of the largest crypto exchange is operating an unregistered securities platform in the country.
The above statement doesn’t look pretty for Binance and the crypto industry as a whole because this shows the SEC’s stance on Binance. In fact, crypto lawyer John Deaton is hinting at the possibility of a lawsuit.
The untimely demise of FTX sent shockwaves across the entire crypto industry. But if Binance, arguably the largest crypto firm today, becomes the target of the FUD, then the industry has to brace for possibly the worst crash in history.
This alone may have directly or indirectly caused the overnight dump of the market. Should the worst fears of many crypto fans come true, then BTC crashing to $18,000 would be a magnanimous estimate.
Tether Vs WSJ
As if this was not enough, Tether, the issuer of the largest stablecoin by market share, is also being targeted by what many call Operation Chokepoint 2.0. An article published by the Wall Street Journal is accusing Tether of using falsified documents and shell companies to regain access to cash.
Tether was quick to deny the allegations, claiming the article was “wholly inaccurate and misleading.” The response read:
“These unfair attacks [from the WSJ article] will not distract us from continuing with those efforts and offering the most liquid and reliable stablecoin experience, which the market has clearly recognized by making us the leaders in the industry.”
Tether USD (USDT) remains the top stablecoin pegged to the US dollar in terms of market capitalization, with a 24-hour transaction volume of $26.5 billion, ten times larger than that of Circle USD (USDC).
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