von • The cryptocurrency market saw a 7% drop below $1 trillion on June 10, with Bitcoin (BTC) and Ether (ETH) falling 3.75% and 6.9%, respectively.
• This decline came after Robinhood announced delisting of „unregistered securities“ tokens from its platform and multiple other exchanges facing regulatory actions by the U.S. Securities and Exchange Commission (SEC).
• Options traders were caught off guard liquidating long positions worth over $340 million in just 24 hours, while Tether’s supply increased during the crypto downturn.
Crypto Market Downturn
The cryptocurrency market fell 7% below $1 trillion on June 10, continuing its decline in the week that saw the industry’s biggest exchanges, Binance and Coinbase, facing regulatory actions by the U.S. Securities and Exchange Commission (SEC). Bitcoin (BTC), the leading cryptocurrency by market capitalization, dropped 3.75% to around $25,500 while second-largest cryptocurrency Ether (ETH) fell 6.9% to around $1,700 – its worst level in two months.
Robinhood Delisting
This downturn comes a day after Robinhood announced delisting of „unregistered securities“ tokens from its online trading platform beginning June 27th citing „a cloud of uncertainty“. Tokens deemed unregistered securities such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) were among the worst performers on June 10thfalling 22%, 25%, and 30%, respectively due to this news.
Options Liquidations
Bullish options traders were caught off guard liquidating long positions worth over $340 million in just 24 hours according to Coinglass data which may have contributed to downward price pressure in addition to Robinhood’s announcement . Binance founder Changpeng Zhao denied reports that his exchange was dumping large amounts of crypto assets into the market which could explain additional price drops seen throughout the day .
Tether Increase
The duration of this crypto market decline has coincided with an increase in Tether’s supply –the largest stablecoin by market capitalization– potentially hinting at buyers entering the space ahead of a possible price recovery .
Conclusion
Overall , it appears that several factors including regulatory uncertainty , bullish option trader liquidations , as well as Binance ‘s rumored activity are responsible for this recent dip in prices across all major cryptocurrencies . As always , only time will tell whether or not these short-term losses are followed by long-term gains or further losses .
