Image default

Are Bitcoin and Tether Biggest Beneficiaries of Binance-SEC FUD?

Key Takeaways:

  • SEC’s lawsuit against Binance will influence the altcoin market with potential delistings.
  • Bitcoin’s strong on-chain metrics and regulatory “immunity” suggest a bullish opportunity.
  • Demand for Tether’s stablecoin USDT could also rise amid the FUD on the back of the tanking competition.
Overhead view of a close-up of Tether on top of various cryptocurrencies over black background
Read on Read on Google NewsGoogle News

YEREVAN ( – The US Securities and Exchange Commission (SEC) charged crypto exchange Binance with violation of securities laws, as reported on June 5. The regulator also deemed top-10 altcoins, such as Cardano (ADA), Polygon (MATIC), and Solana (SOL), securities.

The evaluation left the mentioned altcoins with a 6-8% daily decline. Meanwhile, the FUD could benefit from Bitcoin and the staple dollar-pegged stablecoin Tether (USDT). Here’s how.

Regulatory Clarity for Bitcoin

In the current regulatory mess, Bitcoin is among the only cryptocurrencies with “immunity” from the SEC allegations. Most large market-cap altcoins have been affected by the Binance lawsuit, which means delistings from centralized exchanges are likely in the books.

If so, investors could flee CEXs en masse, which leaves them with a choice: either exchange their altcoins for Bitcoin or use stablecoins as a mediator between crypto and fiat.

As of June 6, Bitcoin (BTC) traded at approximately $25,700 in the Asian-Pacific session after a 5% daily correction.

Bitcoin (BTC) daily price action. Source:
Bitcoin (BTC) daily price action. Source:

Declining BTC reserves and other on-chain indicators are bullish

The Bitcoin exchange reserves, on the other hand, did not rise. Moreover, the metric declined nearly 5% monthly and stood at $2.1 million on June 6. In detail, the declining BTC exchange reserves testify to the investors’ intention to hold on to their coins rather than exchange them.

Bitcoin exchange reserves declined 5% in the previous month. Source:
Bitcoin exchange reserves declined 5% in the previous month. Source:

Additionally, the crypto analytical platform CryptoQuant showed a variety of bullish on-chain indicators for Bitcoin. For example, the total number of active wallets used to send and receive coins has increased by 6.8% compared to yesterday.

Additionally, Long term holders’ movement in the last seven days was lower than the average. “They have a motive to hold their coins,” commented the platform. “More investors are selling at a loss. In the middle of a bear market, it can indicate a market bottom,” added CryptoQuant.

Bitcoin bullish on-chain indicators. Source:
Bitcoin bullish on-chain indicators. Source:

Meanwhile, stablecoins like Tether’s USDT could also significantly benefit from the Binance FUD.

Tether (USDT) market cap crossed $83B

The largest stablecoin by market cap, Tether (USDT), has experienced an explosive rally year-to-date, adding $17 billion to its market capitalization, which reached a new record of $83.2 billion on June 3 and slightly corrected to $83.1 billion on June 6.

Tether (USDT) market cap. Source:
Tether (USDT) market cap. Source:

Moreover, the stablecoin issuer became a Bitcoin bull after announcing it would allocate 15% of its net realized operating profits monthly toward BTC. Tether also registered record profits in Q1 on the back of the tanking competition.

Also read: BNB faces a 25% drop after SEC sues Binance and CZ for securities laws violations. 

One of USDT’s main competitors – Circle’s USDC, suffered a de-pegging incident and slumped due to the Silicon Valley Bank collapse in March. Binance stablecoins BUSD and TUSD could further suffer from the lawsuit, leaving Tether in charge of the sector.

Binance stablecoins could further decline in market cap. Source:
Binance stablecoins could further decline in market cap. Source:

Notably, as of 11:00 UTC, USDT daily transaction volume rallied 73%, reaching $32,4 billion.

Tether (USDT) transaction volume on the rise. Source:
Tether (USDT) transaction volume is rising. Source:

The post Are Bitcoin and Tether Biggest Beneficiaries of Binance-SEC FUD? appeared first on CoinChapter.

Source link

Related posts

AVAX Price Prediction: Avalanche Bulls Aim New 2023 High Above $22

Amorette Lepage

DOT Price Prediction: Polkadot Close Above $6.5 Could Spark Fresh Rally

Amorette Lepage

Internet Computer Breaks Dev Activity Top 5, What It Means

Amorette Lepage

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy