On June 10, Bitcoin (BTC) reached its lowest point in three months, with BTC/USD hitting $25,483, down over $1,200 from the previous day’s high. This occurred as altcoins were hit particularly hard by United States regulatory pressure. The delisting of several cryptocurrencies that accompanied U.S. legal action against major exchanges caused major altcoins to react strongly. 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). Consequently, both Cardano (ADA) and Solana (SOL) saw nearly a 25% drop in value within 24 hours.
Robinhood stated on its website, “We regularly review the crypto we offer on Robinhood. Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET.” Kris Marszalek, CEO of Crypto.com, responded, “As expected, following this week’s action on the regulatory front, we saw some delistings causing market selloff. I guess we are in the ‘then they fight you’ stage on the crypto adoption curve. Make no mistake: the crypto industry will go through this and emerge stronger than ever.” Crypto.com confirmed that it would halt its U.S. institutional trading service beginning June 21.
Impact on the Cryptocurrency Market
The events had a significant impact on the overall cryptocurrency market cap. Michaël van de Poppe, founder and CEO of trading firm Eight, warned that worse may be to come. As with BTC/USD, if the total crypto cap tally loses its 200-week moving average (MA), this would constitute a clear bear signal. Bitcoin’s moving average trend line currently stands at near $26,400. “This is not the weekly candle you’d want to see on the total market capitalization for Crypto,” he told Twitter followers alongside a chart. “Losing the 200-Week MA shouts for downwards continuation on the trend.”
Despite the damage done to existing traders by long liquidations totaling $320 million for June 10, according to data from CoinGlass, some popular traders revealed interest in altcoin buys at lower prices. Accompanying Michaël van de Poppe was Crypto Tony, who predicted “incredible entries” on the table for 2023. Another $70 million in short positions also evaporated. The cryptocurrency industry will need to weather the storm of regulatory pressure and delistings, but it is expected to emerge stronger than ever.