Bitcoin (BTC) Price Falls, Sell the Rally Market Confirmed
Bitcoin (BTC) price is trading 5.5% lower today as the bears threaten to completely erase all gains recorded yesterday when the world’s largest digital asset closed 4.89% higher, according to Coinbase data.
Bitcoin price has now returned to trade at around $29,500 as the choppy summer trading continues. The data also shows that the market is facing lower trading volume i.e. sub $30 billion in daily volume.
The Coinglass data shows that over $218 million worth of positions on derivative exchanges have been liquidated in the past 24 hours.
Ethereum, the second-largest cryptocurrency is down around 5% today and currently trades at $1,765.
A drop in Bitcoin price comes after the tech-heavy Nasdaq index reversed its direction yesterday to now trade at nearly 0.9% in pre-market trading on Tuesday. Given that US-listed crypto-linked stocks jumped yesterday on a move higher in Bitcoin, those gains are now being erased.
Coinbase trades 4% lower in pre-market Tuesday after closing 5.97% higher yesterday. MicroStrategy is down 5.55% after gaining 3.62% yesterday while Riot Blockchain is indicated to open almost 5% lower today.
The entire cryptocurrency ecosystem came under intense pressure yesterday after it was reported that the US Securities and Exchange Commission (SEC) has launched an investigation into Binance and its native token BNB.
The SEC is reportedly focused on BNB’s Initial Coin Offering (ICO) and whether the process respected the process of a security sale.
Binance confirmed that the “conversation” with the SEC is “ongoing.”
“It would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests,” the company said in a statement.
The total cryptocurrency market cap is down 4.4% today to trade around the $1.2 trillion handle.