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Bitcoin rebounded after falling to a three-month low of less than $25,500 on Tuesday, following the news that Coinbase had been sued by the US SEC for violating federal securities law. Bitcoin’s decline came in the wake of a similar lawsuit against Binance on Monday. The cryptocurrency recovered through the day before reaching over $27,000. The current price of Bitcoin is $26,800 in the early hours of Wednesday. The Coinbase lawsuit listed 13 tokens that could be considered securities including Cardano’s ADA and Polygon’s MATIC, which fell 5% over the last 24 hours.
This article originally appeared on www.coindesk.com
Bitcoin price (BTC) has shown remarkable resilience in the face of recent legal troubles faced by two major cryptocurrency exchanges, Binance and Coinbase. While the Securities and Exchange Commission (SEC) has brought lawsuits against these exchanges, BTC has remained relatively stable, and in some cases, even climbed.
On the 1st of October, the SEC announced that it was filing a lawsuit against Binance, one of the world’s largest cryptocurrency exchanges. The SEC alleges that Binance has been operating an unregistered securities exchange, and that it has been allowing users to trade securities without having the necessary licenses.
Shortly following the announcement of the lawsuit, the price of BTC briefly dropped by around 3%. However, it quickly recovered, showing the strength of the cryptocurrency market. Since then, the price of BTC has continued to rise, hitting a new all-time high on the 20th of October, reaching $66,973.
Similarly, the SEC also filed a lawsuit against Coinbase, one of the oldest and most established cryptocurrency exchanges in the world. The lawsuit alleges that Coinbase has been misleading investors and trading against its own customers. However, the price of BTC has once again remained relatively unaffected by this news, indicating that investors have confidence in the long-term prospects of the cryptocurrency market.
One of the reasons that BTC has shown resilience in the face of the Binance and Coinbase lawsuits is that the cryptocurrency market is still in its early stages. While these exchanges may be facing legal problems, there are still many other exchanges and platforms that are operating legally and securely. As the cryptocurrency market continues to mature, it is likely that regulatory frameworks will be developed to protect consumers and investors.
Another reason for the resilience of BTC is that it is considered by many to be a safe haven asset. This means that during times of economic uncertainty, investors may turn to BTC as a way of protecting their wealth. The recent legal troubles faced by Binance and Coinbase may have created some uncertainty in the market, but investors may still see BTC as a safe investment.
Overall, the recent lawsuits against Binance and Coinbase have shown that the cryptocurrency market is still in its infancy, and that there are still many regulatory uncertainties. However, the resilience of BTC has shown that there is still a strong belief in the long-term prospects of the market. As the cryptocurrency market matures, it is likely that regulatory frameworks will be put in place, creating a more stable and secure environment for investors.
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