Key Takeaways:
- SEC’s lawsuit against Binance will influence the altcoin market with potential delistings.
- Bitcoin’s strong on-chain metrics and regulatory “immunity” suggest a bullish opportunity.
- Demand for Tether’s stablecoin USDT could also rise amid the FUD on the back of the tanking competition.
YEREVAN (CoinChapter.com) – The US Securities and Exchange Commission (SEC) charged crypto exchange Binance with violation of securities laws, as reported on June 5. The regulator also deemed top-10 altcoins, such as Cardano (ADA), Polygon (MATIC), and Solana (SOL), securities.
The evaluation left the mentioned altcoins with a 6-8% daily decline. Meanwhile, the FUD could benefit from Bitcoin and the staple dollar-pegged stablecoin Tether (USDT). Here’s how.
Regulatory Clarity for Bitcoin
In the current regulatory mess, Bitcoin is among the only cryptocurrencies with “immunity” from the SEC allegations. Most large market-cap altcoins have been affected by the Binance lawsuit, which means delistings from centralized exchanges are likely in the books.
If so, investors could flee CEXs en masse, which leaves them with a choice: either exchange their altcoins for Bitcoin or use stablecoins as a mediator between crypto and fiat.
As of June 6, Bitcoin (BTC) traded at approximately $25,700 in the Asian-Pacific session after a 5% daily correction.
Declining BTC reserves and other on-chain indicators are bullish
The Bitcoin exchange reserves, on the other hand, did not rise. Moreover, the metric declined nearly 5% monthly and stood at $2.1 million on June 6. In detail, the declining BTC exchange reserves testify to the investors’ intention to hold on to their coins rather than exchange them.
Additionally, the crypto analytical platform CryptoQuant showed a variety of bullish on-chain indicators for Bitcoin. For example, the total number of active wallets used to send and receive coins has increased by 6.8% compared to yesterday.
Additionally, Long term holders’ movement in the last seven days was lower than the average. “They have a motive to hold their coins,” commented the platform. “More investors are selling at a loss. In the middle of a bear market, it can indicate a market bottom,” added CryptoQuant.
Meanwhile, stablecoins like Tether’s USDT could also significantly benefit from the Binance FUD.
Tether (USDT) market cap crossed $83B
The largest stablecoin by market cap, Tether (USDT), has experienced an explosive rally year-to-date, adding $17 billion to its market capitalization, which reached a new record of $83.2 billion on June 3 and slightly corrected to $83.1 billion on June 6.
Moreover, the stablecoin issuer became a Bitcoin bull after announcing it would allocate 15% of its net realized operating profits monthly toward BTC. Tether also registered record profits in Q1 on the back of the tanking competition.
Also read: BNB faces a 25% drop after SEC sues Binance and CZ for securities laws violations.
One of USDT’s main competitors – Circle’s USDC, suffered a de-pegging incident and slumped due to the Silicon Valley Bank collapse in March. Binance stablecoins BUSD and TUSD could further suffer from the lawsuit, leaving Tether in charge of the sector.
Notably, as of 11:00 UTC, USDT daily transaction volume rallied 73%, reaching $32,4 billion.
