Topic: SEC lawsuit caused massive market crash (Read 708 times)

It's too early to talk about any kind of agreement, because things can still go on. Binance has filed a lawsuit against the SEC, hired lawyers, and the fight is just beginning. The SEC may not be on the defensive in this fight either, but they will also attack, filing counter-suits and new charges that will be uncovered during the investigation. This could all drag on for years, like the Ripple situation, so I wouldn't jump to the conclusion that they have come to some kind of agreement.

BTC saw a temporary surge in market prices because of the Blackrock ETF filing and the creation of a new crypto exchange backed by prominent financial companies. I'm afraid things will head back to the way they were before the pump because of the SEC's aggresive stance against crypto. The real deal would be the upcoming BTC halving of April 2024. Market prices will increase due to the hype (aside from that fact that BTC will become scarcer).

I don't think SEC chairman Gary Gensler will be able to "survive" after a change of government in 2025. If he's removed from office, crypto exchanges in the US will be relieved. Globally-speaking, this should have a positive effect over market prices in the short-term. Who knows if we'll see the light at the end of the tunnel soon? Just my opinion

I think there will be following up of these series of crashes in the future, such a good time to make entry for those that have the capitals.
though it's unclear in regard of cryptocurrency fates in general, maybe things will get worse instead, since the results are still unknown.

These are serious allegations against the head of the SEC. If this information has become public, then the US Congress or other competent authorities should appoint an appropriate check and conduct an objective investigation.
But, in any case, over the past week, the price of bitcoin has already increased by more than 20 percent, and ethereum by more than 16 percent. The cryptocurrency market is recovering well. We expect the trend to continue.

I think everyone has their price if the SEC chairman is doing the bidding of the power to be just to let them get in at a lower price. The level of corruption at government agencies is of the highest order. I read somewhere that he was after Binance because the chairman was overlooked for an advisory position at the exchange and also CoinBase CEO said the SEC chairman placed a short position before making those stupid announcements that crashed the market. If not that journalism has been bought, this would have been a career-ending allegation, but the media are helping him blow his trumpet.

And we have seen that there are no crashed though, sure bitcoin goes below $26k and other altcoins suffered, but look at where the price right now as we have a instant rally in the last 48 hours.

And for sure the SEC lawsuit is not being forgotten, we might just have to wait for the result and see how it goes. But as far as the market is, there is no longer that lingering effect. And that's how the market is, sometimes there are negative news that will bring down the market but after several days when everything has settled down, we will be on the road to recovery.

Yes, Last week, there was a significant market crash, but for the past 3 days, the market has been showing positive signs. However, it is uncertain whether this upward trend will be sustained or if it is merely a temporary situation to deceive buyers. It is well known that whenever the SEC takes any action, it negatively impacts the market. In addition to the significant impact of the Binance lawsuit, other coins that have been labeled as securities by the SEC have also experienced substantial drops. Nevertheless, I have observed that the effects lasted only for a period of 5-7 days, and now the market is recovering once again. However, investors will now likely pay closer attention to BTC and Ethereum due to the SEC's actions.

I'm pleasantly surprised to see the SEC and Binance come to an agreement. I was expecting the whole incident to be a lot more serious, which sheds doubts on how serious the confict actually a larger plan to plan to manipulate the market and/or hurt cryptocurrencies and analyze at what degree they were affected.
Everything you mentioned is true, Bitcoin has shown a speedy recovery and has already almost surpassed $29,000 in a matter of a few days after the incident was resolved. Thus, it's fair to claim that it wasn't a Bitcoin issue, but an aimed condemtion against selected altcoins, including BNB, which is yet to recover to what it previously was. Moreover, as you've already mentioned, it's known for Binance to list random tokens, which is probably why the lawsuit occured in the first place.

This recovery is proof that Bitcoin isn't the issue, and governments and the media know that hurting it is only temporary.
We haven't won but at least it wasn't further escalated, there needs to be some kind of regulation regarding ICOs and tokens that keep popping up every day, with the majority of them aiming to scam investors.

The criminal case is already a measure of last resort. Judging by how quickly Binance and SEC managed to agree, there was not such a serious situation, which could lead to such a sad outcome, as a criminal case or even the arrest of CZ. I'm more inclined to believe that it's all the usual market manipulation and FUD, and the situation itself is much less dramatic than various media are trying to describe it in the information field.

The US has some crypto-friendly politicians, so all hope is not lost. There's a bill introduced in Congress aiming to remove SEC chairman Gary Gensler from his position. Whenever it'll be approved or rejected by both chambers of Congress (House and Senate) it's yet to be seen. Whatever happens, you can rest assured crypto won't be going anywhere soon. Crypto companies, businesses, and exchanges will move their operations elsewhere if the US continues to treat the industry with an "Iron Fist".

Centralized exchanges are the gateways into and out of the Fiat/crypto worlds, so anything bad related to them will certainly affect market prices in the short-term. Long-term speaking, prices should go all the way to the moon. I'd just forget about the negatives and only focus on the positives. This extended bear market is a great opportunity to grab prominent cryptocurrencies at a huge discount. If you act now, you'll reap the rewards in future. Maybe you'll become the next crypto millionaire? Just my opinion

The price of bitcoin began to recover and returned to exceed the threshold of $26,000, and this, according to my simple estimation, proves that users are finally aware that the US authorities targeting the Binance platform (and the Coinbase platform in parallel) is not a targeting of bitcoin, nor any of the decentralized projects that it is logical that it cannot be targeted. Technically due to its decentralized nature backed by blockchain.

Prosecuting these platforms, in my opinion, is indeed a matter of duty, and we (as a crypto community) do not have any institution capable of holding these platforms accountable for their intercontinental activity that does not adhere to state borders, which explains that the SEC is targeting the activity of these platforms directed at American users. In a comment, I mentioned that I am a supporter of these measures to limit the activities carried out by these platforms, which in their simplest form require licenses. One of the most important accusations leveled against both platforms is that both of them provide staking interest services, which is a banking product that banks are required to obtain a license to do and is supposed to be subject to government supervision.
The other important aspect of this issue is that centralized cryptocurrency projects that are produced from nothing (literally) and whose developers enjoy making profits are being targeted just by listing them on one of the platforms, and the Binance platform lists thousands of them on its systems, and I mean specifically what is defined as stable currencies. coins.

There is no need to panic about what is happening and the recovery of the market proves that the crypto community has understood the lesson of not targeting Bitcoin specifically and that Bitcoin cannot be actually targeted.
On Chain data proves the high volume of funds withdrawn from platforms to private wallets, and this is a good indication of the decline in confidence in trading platforms and the search for safer options.

I am not sure what kind of regulatory challenges are you referring to in the past? I haven't seen this level of conflict before if we are not talking about regions where it's legal to use cryptos

Mostly whole cryptocurrecy scene have just complied with regulators. We haven't "won" any cases against regulators, just accepted the facts and complied.

Marketing ICOs/sales are more closely regulated as people now know that you can end up going to jail over them. Taxation regulations are updated to handle cryptos. CEXes, casinos and eveyone dealing with money are complying with aml regulations that many crypto users seem to see as invasive.

To comply with regulators on this issue and future legistlations that are going to happen will be more challenging than anything i've seen before. This doesn't mean we won't find a common ground because most likely we will, but it will look different then we are used to.

I do not think that it would, this ain't even that serious right now, "criminal" case is way too much for something like this. At the very worst case what would happen could be giving them a fine, in turn of many million dollars of course but it's a fine anyway, and Binance will pay it and they will move on, that's all I am guessing it's going to happen.

I understand that people are a bit worried about what's going to happen but that's just not the case in this one. I think it would be important to just let it be for a while, let them handle it between each other and they will come to a conclusion and the problem will be solved. you think Binance wouldn't know what SEC wants, it's a bribe, Binance is billions of dollars worth company, they can handle it.

Correct, the USA isn't the whole world, and while a possible withdrawal of Binance in the USA will hurt cryptocurrencies, it'll only last for a short period, and the gap will quickly be filled by another exchange. Governments don't care about innovation and technology; they see it as a threat for a variety of reasons, such as tax evasion and privacy, which they are against. While it may seem that purchasing now may be a huge opportunity, current purchases may be a liability because further allegations may hurt Binance on a worldwide basis. There's no guarantee on what will happen next. The situation requires cautious moves, as things may quickly take a sudden turn for the worse.

Well, they are driving innovation out of the country with these regulations but it's not that bad, the US market isn't the entire crypto market and there a lot of other countries that pushing for more transparent laws and regulations for crypto. I don't think Binance will left for good in the US, they even made a deal with the SEC already if you are following the news but it's likely an absurd deal if I will be the one being asked.

It's very unfortunate to see how the SEC is reacting against this nascent industry. This will set back the US in terms of crypto adoption and innovation. If the regulating agency keeps pushing against crypto exchanges, they will abandon the country and move to a place where they're welcomed with open arms. Hong Kong and the UAE will be "eating the US' cake" faster than you can imagine. Crypto companies and startups already announced their intentions to move there.

Without the US market, I'd envision crypto market prices going down for an extended period of time. US-based customers will have to find a way to buy/sell crypto with USD through other means (P2P, OTC, etc) as there will be no mainstream exchange (CEX) left in the country. This might force the US-based crypto industry to go underground. BNB might've dipped in price, but it could only be temporary as Binance shuts its operations in the US for good. The question is: Are you buying the dip?

Certainly, no one can guarantee that Bitcoin won't fall below $25,000; it already fell a little below that a few days ago but recovered. As I've mentioned in another post, if the current SEC lawsuit progresses and we have further investigations and possibly the abandonment of the US market by Binance, then we're almost bound to see another crash, similar to the one that occurred with FTX. It may last a couple of weeks to a month or two, but eventually it'll recover. DCA is a decent solution to lower the risk, but it's not an infallible solution nonetheless. While this may seem like an opportunity to purchase BNB, for instance, the current situation isn't ideal.

Don't forget, bitcoins have real use cases so anyone who holds them seems to have a better sense of security than holding thousand of altcoin with no use cases as their investment. Bitcoin's apparent use as a currency and its increasing adoption rate have led many to believe that bitcoin has a better future than most altcoin.

If you know how bitcoin gives you the freedom to manage your own finances then you are probably very optimistic about the future. The bitcoin community is very strong, you seem have a bank in your hands with bitcoin, and you will very easily send money to any country without restrictions and long waiting times.

That is an extremely optimistic statement if anyone thinks bitcoin is incapable of falling below 25k. It is not such an insurmountable level that it can be considered some kind of foundation that will never crack. In my opinion, a price of 20k looks much stronger than the 25k mark.


The point is that people talk about bull cycles and selling during this period, but very few people can define the scope of this bull cycle, where it begins and where it ends. Usually it only becomes clear after the bull cycle is over.

Indeed, some investors anticipate a crash and opt for liquidation. But is that prudent? Your claim that Bitcoin wont plunge below $25k in a crash is audacious. Yet, given the crypto market' notorious volatility, its unwise to set such rigid limits. Markets dont adhere to our wishes, correct?

While crashes present an opportunity for acquisition at lower rates, one must tread carefully. Not all 'deals' justify the risk. The DCA strategy can be a safeguard, not an infallible solution

Selling during bull runs is traditional advice. However, pinpointing the onset of a bull run is like solving a complex puzzle. Who declares its commencement? Do we recognize it when we're in it? The crypto market' unpredictability calls for persistent skepticism.