Despite the blow dealt to the prices of BTC and top altcoins following an escalation in the regulatory crackdown on the crypto industry this year, Bitcoin investors have demonstrated resilience. The overall market cap plummeted to $1.07 trillion, a level not seen in three months, before experiencing a modest recovery to the current figure of $1.1 trillion. Bitcoin itself reached a near two-month low after a period of relatively stagnant trading. Additionally, several leading altcoins suffered substantial losses, raising concerns about further market strain.
Nevertheless, on-chain data presents a bullish outlook, indicating that investors have remained steadfast in the face of significant regulatory turmoil.
Current Capitulation Over 96% Smaller
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 price demonstrated a rebound as it found robust support at the previously mentioned critical price levels, defying the downward pressure. Glassnode highlighted that a sustained period above these levels would serve as a positive signal for the current trend.
Following the rebound, Bitcoin surged to nearly $27k before experiencing a slight decline today. The market’s ability to shrug off initial concerns reflected the participants’ confidence, despite ongoing attempts to regulate the cryptocurrency industry, which have yet to provide clear guidance.
On the network side, Bitcoin’s hash rate and difficulty level remained unaffected by the regulatory turmoil and continued to hover close to their respective all-time highs.
