Bitcoin, Ethereum, Dogecoin Fall Even As SEC Ends Lawsuit Against Binance: Analyst Says 'Play Safe' As Downside To $102,000 A Possibility

Leading cryptocurrencies slid on Thursday, even as the Securities and Exchange Commission dropped its lawsuit against cryptocurrency behemoth Binance.

What Happened: Bitcoin plunged below $105,000 overnight while its trading volume rose over 15% from the previous day.

Bitcoin’s slump pushed the entire market lower, with Ethereum falling below $2,600 and Dogecoin down more than 7%.

That said, blue-chip currencies looked set to end May on a high note, with Bitcoin up 12.12% and Ethereum up almost 45% since the month began.

Meanwhile, the SEC ended its nearly two-year-long enforcement action against Binance, which alleged that the cryptocurrency exchange had violated securities law and misled customers.

Binance celebrated the legal win, thanking SEC Chair Paul Atkins and President Donald Trump.

Over $734 million was liquidated from the cryptocurrency market in the last 24 hours, with $628 million in long liquidations wiped out.

Bitcoin’s Open Interest tumbled 3.34% in the last 24 hours, while Ethereum recorded a 4.15% decline. Interestingly, the majority of Binance traders with open BTC positions were positioned long as of this writing.

The market correction lowered the “Greed” sentiment from 74 to 60 in the last 24 hours, as indicated by the Crypto Fear and Greed Index, implying a degree of panic.

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The global cryptocurrency market capitalization stood at $3.36 trillion, following a decrease of 1.71% in the last 24 hours.

Stocks edged higher Thursday. The Dow Jones Industrial Average rose 117 points, or 0.28%, to end at 42,215.73. The S&P 500 gained 0.40% to close at 5,912.17, while the tech-heavy Nasdaq Composite rallied 0.39% to end at 19,175.87.

The market reacted to developments around Trump's tariffs. The U.S. Court of Appeals for the Federal Circuit issued a temporary stay on the judgment of the U.S. Court of International Trade, which had previously struck down a significant portion of Trump's tariffs.

Additionally, Nvidia Corp.'s NVDA first-quarter revenue and earnings beat helped drive the market. The stock rose 3.24% during the regular session.

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Analyst Notes: Blockchain analytics firm CryptoQuant noted that, despite the market being less noisy, the Bitcoin Combined Market Index, which includes key indicators like the Fear & Greed Index, signaled an "early recovery" in market sentiment.

"With on-chain sentiment rising and profit-taking easing, the Bitcoin Combined Market Index suggests the market may be entering an early accumulation phase," CryptoQuant added.

Widely followed cryptocurrency analyst Rafaela Rigo said Bitcoin's correction was expected, and further downsides to $102,000 could be likely.

"Play safe," Rigo stated.