Bitcoin reached a price of over $27,000 recently, following a downward trend caused by news of the SEC's complaint against Binance and Coinbase exchanges. Surprisingly, this price increase happened amidst negative news.
According to CoinDesk, Bitcoin's price grew by 4.3% yesterday, reaching a daily high of $27,391. Earlier, it had dropped to around $25,400 after the SEC filed a complaint against Binance. The SEC also filed a complaint against Coinbase the following day, requesting a temporary freeze on Binance's US branch assets. However, these negative developments did not have a significant impact on Bitcoin's further decline, and the world's largest cryptocurrency resumed its upward momentum.
Joshua Franklin, CEO and Co-founder of "The Tie" platform, commented on the situation:
"The market's resurgence suggests that traders may have been anticipating such news and had already factored it into the prices of digital currencies during the earlier price decline."
Vetle Lunde, Senior Analyst at "K33 Research," stated on Wednesday that the sharp price decrease in Bitcoin after the SEC's complaint against Binance was an overreaction. Lunde further explained:
"Bitcoin is classified as a commodity. Americans can buy Bitcoin through exchanges, tradable funds in the stock market, payment apps, and other means. There was a possibility of funds flowing towards Coinbase and Kraken exchanges, but the market shouldn't have dropped by 5% and put one of the payment platforms at risk."
Edward Moya, Senior Analyst at the "Oanda" platform, also suggested that the SEC's crackdown on altcoins could benefit Bitcoin. Moya elaborated:
"The price of crude oil doesn't drop simply because the SEC files a complaint against ExxonMobil. Similarly, if the agency takes action against the CEO of Barrick Gold, the price of gold doesn't decrease. Oil is oil, and gold is gold. Both are unchangeable, always exist, and aren't significantly affected by daily events. It appears that Bitcoin, Ethereum, and other assets should behave in a similar manner."
It's worth noting that Ethereum's price also experienced an upward trend, growing by 4% and nearing the $1,900 range on Wednesday. Binance Coin, which had faced a 10% drop on Tuesday, managed to recover with a 2% increase. Cardano and Solana prices also saw small gains of 0.5% and 1% respectively. However, Polkadot's price decreased by nearly 3% during this period. The SEC claimed in their case against Binance that these cryptocurrencies (except Ethereum) are considered unregistered securities.
