The Bitcoin (BTC) market rebounded swiftly after the United States Securities and Exchange Commission announced the charges against Binance and Coinbase Global. Investors were quick to capitalize on the lower prices, especially in anticipation of next year’s halving event that is likely to trigger the next crypto bull market. Crypto investors recognize that SEC Chair Gary Gensler is attacking specific projects that have predatory tokenomics but left Bitcoin out, which has increased their confidence.
In most jurisdictions around the world, Bitcoin is viewed as a commodity like Gold and Oil that people purchase to hedge against inflation. Nonetheless, the SEC is fighting to avoid a situation like FTX and Alameda, where most investors were left stranded.
Gary Gensler: Crypto better come into compliance or risk falling apart like a house of cards’ 🤔
— Crypto Crib (@Crypto_Crib_) June 7, 2023
Bitcoin Market Resilience
According to on-chain financial insights provided by Glassnode, the Bitcoin market did not record any anomaly in terms of realized losses following the SEC legal action against Binance and Coinbase. Interestingly, the FTX and Alameda collapse constituted a realized loss of 10 times higher than the past two days.
As a result, Glassnode concluded that the Bitcoin market is now more resilient than before.
“The magnitude of Realized Losses recorded On-Chain remains quiet at $112M. This remains -$3.05B (-96.5%) smaller than the largest recorded capitulation event, suggesting an increased degree of resilience amongst market participants,” Glassnode noted.
In any case, the Bitcoin realized profit/loss ratio momentum has remained in the green, thus suggesting more investors have been cashing out in profits than losses.
