Cryptocurrencies have been on a downtrend since the Securities and Exchange (SEC) lawsuits against Binance and Coinbase earlier this week. Bitcoin (BTC) was recently trading at $26,364, off 3.2% over the past 24 hours, while Ethereum (ETH) fared somewhat better to recently trade at $1,834, off 2.7%. BNB, the Binance Smart Chain’s native token, recently dropped 7.6% from Tuesday, same time, and at one point earlier in the day sank to about $252, its lowest price since early January.
In an email to journalists, Ruslan Lienkha, chief of markets at Web3 crypto and fiat service provider YouHodler, wrote that the firm was expecting continued higher volatility for days or even weeks as a result of the SEC suits, said journalists.
CoinDesk analyst Glenn Williams wrote in a column that the CoinDesk Indices’ Ether Trend Indicator (ETI) moved into significant uptrend territory, an improvement over its reading a day prior. The ETI suggested that recent bullish price action is outpacing previous price moves.
Per on-chain data firm Glassnode, the amount of stablecoins held on exchange addresses has declined from 32 billion to 19 billion between January 2022 and June 2023. The price for both BTC and ETH are down 45% and 50% respectively over that time frame. Increases in the stablecoin exchange balance during the remainder of 2023 will be a likely indication that buying demand is increasing.