The overall market cap fell to $1.07 trillion – a level last seen three months ago – before a modest recovery to the press time figure of $1.1 trillion. Bitcoin, for one, dumped close to a two-month-low after weeks of trading largely rangebound in recent months. Several top altcoins posted higher losses prompting concerns about additional market stress.
Despite this, on-chain data reflected a bullish picture as investors remained resilient in the face of severe regulatory turmoil.
The crypto market endured millions of losses in liquidations as two of its biggest players were sued this week by the US 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-listed exchange, Coinbase, of violating securities laws.
But Glassnode’s latest analysis was indicative of an increased degree of resilience amongst market participants.
The crypto analytic company said the crescendo in United States regulatory pressure on major crypto heavyweights – Binance and Coinbase – triggered significant volatile moves for the market in “both directions.” Even so, the magnitude of ‘Realized Losses’ recorded on-chain remains near $112 million – which is around $3.05 billion smaller than the largest recorded capitulation event.
Bitcoin’s spot price continued to find strong support at the previously reported key pricing levels despite the downward pressure. Glassnode stated that sustained duration above these key levels would continue to be a constructive signal regarding the current trend.
Meanwhile, Bitcoin quickly rebounded to almost $27k before sliding slightly today. The ability of the market to shake off initial nerves depicted a confident outlook by the participants despite attempts to slow it down by way of a path to regulation that has so far fallen short of clarity.
On the network side of things, Bitcoin’s hash rate, as well as difficulty level, remained “indifferent” to the regulatory commotion and continued to hover near their respective all-time highs.