Bitcoin, Ethereum, Dogecoin Head Lower As Stocks Bleed Amid Surging Bond Yields — Analyst Says 97% Of Short-Term Holders Enter 'Panic' Mode

Major cryptocurrencies saw a significant decline in value on Wednesday evening following the filing of a dismissal request by Binance, Binance.US, and Changpeng Zhao in response to a Securities and Exchange Commission (SEC) lawsuit.

Binance, Binance.US, and Zhao have filed a motion to dismiss the SEC lawsuit against them. They argue that the SEC has not provided sufficient evidence to support their allegations of securities-related violations. 

Furthermore, they claim that the SEC is attempting to assert authority over digital assets without clear legislative direction from Congress.The SEC initially sued Binance, Zhao, and Binance.US in June, accusing them of unlawfully listing unregistered securities.

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Currently, the global crypto market capitalization stands at $1.06 trillion, a 0.84% decrease in the last day.

Stocks experienced a decline on Thursday amidst a surge in Treasury yields, reaching multiyear highs. Consequently, the S&P 500 dropped by 1.64%, closing at 4,330, while the Nasdaq Composite declined by 1.82% to 13,223.98. The Dow Jones Industrial Average fell over 370 points to 34,070.42.

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Analyst Notes

According to crypto analyst Michael Van de Poppe, Bitcoin is currently at a crucial level that needs to be maintained.

The markets are experiencing a correction following the super hawkish FOMC meeting and dotplot.

There is an expectation of a relief bounce from the US open, and the fate of Bitcoin ultimately hinges on it holding above $26,500.

"Bitcoin back in the chop. I think we’ll continue to do so, so the funding game continues to be played out too."

Crypto Tony said, "So my plan was to long while we remained above $26,800 and thus far that is what we are doing."

Speculators have entered a state of "panic" as new research suggests that the majority of them are currently experiencing losses. According to Glassnode, an analytics firm, 97.5% of short-term holders (STHs) are facing unrealized losses. 

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