- The broader crypto market rebounds following the SEC lawsuit against Binance and Coinbase, with a 3% increase and Bitcoin surging by 4%.
- Gaming and metaverse tokens like Axie Infinity (AXS) and The Sandbox (SAND) have also shown some strong movement this week.
A day after the U.S. Securities and Exchange Commission (SEC) slapped a lawsuit on two of the biggest crypto trading platforms – Binance and Coinbase – the broader crypto market has registered a strong rebound. The broader crypto market is up by 3% at press time, while the BTC price surged 4% moving closer to $27,000.
It seems that investors have chosen to look past the regulatory actions showing confidence in the market. Apart from Bitcoin, altcoins have also made a strong move upside today with Ethereum (ETH), XRP, Dogecoin (DOGE), and others gaining 2-4 % each.
Bitcoin, Ethereum, and other assets have registered a V-shaped recovery quickly regaining the lost ground from the negative impact of yesterday’s SEC complaint. Data from options trading platform Greeks.live shows:
The V-reverse market drove options volume sharply higher, with daily volume up over 400%, while short-term IV rose slightly. Of particular interest was the 290k ETH block calls traded yesterday, accounting for 57% of the day’s volume, with a notional value of $540 million, consisting mainly of nearly 100,000 sets of calendar spreads, with the strike price of this Whale Bid lower compared to last month.
However, depending on the current market movement, it would be difficult for the ETH price to cross past $2,000 and this V-reversal is unlikely to change the inherent bearish characteristic of the market.
Gaming and Metaverse Tokens Gain
In its recent lawsuit against Binance, the SEC named several altcoins such as Solana (SOL) and Polygon (MATIC) that have been trading as unregistered securities. These altcoins have taken a heavy beating in the market since the beginning of the week.
The crypto industry seems breaking out of its usual pattern of following the US equities. While the US equity indexes are on a strong footing since the start of the week, cryptocurrencies have faced some selling pressure.
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Although the broader crypto market entered correction earlier this year, some gaming and metaverse coins such as Axie Infinity (AXS) and The Sandbox (SAND) made some strong move upside. Earlier on Monday, June 5, the AXS token price surged all the way to a high of $7.50. Similarly, the SAND price made a high of $0.61 earlier this week on June 5. However, both these cryptocurrencies have corrected significantly since then.
While some altcoins have shown gains over the last 24 hours, not all have joined the party. Polygon MATIC and Solana SOL, named in the SEC lawsuit, are still in the negative territory. On the other hand, altcoins such as Litecoin (LTC), Polkadot (DOT), and avalanche (AVAX) are up by 3%.
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