$300 Million in Liquidations Following the Latest SEC Enforcement Action

If the goal of US regulators is to crash the crypto markets and cause investors to suffer losses by instilling fear, then they are achieving their goal.

Crypto markets have shed $55 billion, or about 5%, since the Securities and Exchange Commission sued Binance for violating securities laws.

As a result, total capitalization fell to $1.13 trillion, the lowest level since mid-March.

crypto liquidation surge

According For CoinGlass, over $270 million in long positions were liquidated in the past 12 hours. Additionally, $24.8 million of short positions were liquidated in the crypto market route.

In the last 24 hours, a total of 116,630 traders were liquidated, bringing the total liquidation to almost $300 million. Binance only saw $2.89 million in liquidations, but it continues to top the list for centralized exchange derivatives liquidations.

Arthur Hayes, former CEO of BitMEX, was not amused when he claimed that the risks were due to TGA (US Treasury General Account) refills, and not Binance FUD.

The market is down on some Binance FUD. But regardless of the catalyst, the risk arises at the edge of the TGA refill. By the end of summer the market will be beyond that and the LG AMT will be humming money printing in the background. i have some shitcoins to buy in the meantime pic.twitter.com/w52QABpgvJ

— Arthur Hayes (@CryptoHayes) June 6, 2023

According For Glassnode, Binance has yet to see a major outflow, with nearly 10,000 BTC leaving the exchange. According to the analytics provider, this equates to a drop in balances on Binance of roughly 1.5%.

Altcoins are bearing the brunt

Bitcoin has retreated 4.8% in the last 12 hours or so to trade at $25,754 at the time of writing. A drop of this magnitude is fairly typical for BTC, but it may seem more severe as the market has been extremely quiet lately. Moreover, BTC is still inside its range-bound channel, but now at its lower range.

Ethereum only lost 3.8% and remained above $1,800, staying within its sideways channel. However, the same cannot be said for altcoins.

As expected, Binance coin BNB fared even worse, falling 9% to $276, its lowest price since March 12.

The SEC has labeled a large portion of crypto assets as securities, and they too are hitting hard today. In addition to BNB, these include Cardano (ADA), down 7%, Solana (SOL), down 8%, and Polygon (MATIC), down 6.6%.

Other asterisks with a brush with similar securities include Algorand (ALGO), Cosmos (ATOM), Filecoin (FIL), Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS).