The overall market capitalization fell to $1.07 trillion – a level last seen three months ago – before a modest recovery to the $1.1 trillion figure at press time. Bitcoin, for its part, fell near a two-month low after weeks of trading largely in the range in recent months. Several top altcoins saw higher losses, raising concerns of additional stress in the market.
Despite this, the on-chain data reflected a bullish picture as investors remained resilient amid severe regulatory turmoil.
Current capitulation over 96% smaller
The crypto market has suffered millions in losses in liquidations, with two of its major players being sued this week by the United States Securities and Exchange Commission (SEC). The agency filed 13 charges against Binance and its boss CZ, and the next day it accused the country’s only publicly traded exchange, Coinbase, of violating securities laws.
But the latest from Glassnode analysis showed an increased degree of resilience among market players.
The crypto-analytics firm said the crescendo of regulatory pressure in the United States on major crypto heavyweights – Binance and Coinbase – has triggered significant market volatility in “both directions”. Even so, the magnitude of “realized losses” recorded on the channel remains close to $112 million, about $3.05 billion less than the largest capitulation event on record.
Bitcoin Price Rebound
Bitcoin spot price continued to find strong support at previously signaled key price levels despite downward pressure. Glassnode said sustained duration above these key levels will continue to be a constructive signal regarding the current trend.
Meanwhile, Bitcoin quickly rebounded to near $27,000 before slipping slightly today. The market’s ability to shake initial nerves portrayed a confident attitude from participants despite attempts to slow it down through a path to regulation that has so far been unclear.
On the network side, Bitcoin’s hash rate, as well as the difficulty level, remained “blind” to the regulatory turmoil and continued to hover near their respective all-time highs.
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