The crypto market has experienced a heavy sell-off in the last 24 hours, resulting in nearly $400 million in liquidations and double-digit losses for altcoins. While some have speculated that a major crypto fund could be behind the sudden drop, Binance CEO Changpeng Zhao has stated that the market is influenced by human emotions and that no one knows for certain what causes it.
Zhao also addressed false market narratives, assuring users that rumors of Binance converting its crypto holdings to fiat were untrue and that he had no knowledge of Robinhood dumping $1.3 billion worth of altcoins on the market. He advised traders to manage their risk and reassured them that the Binance platform would continue to work smoothly despite regulatory scrutiny.
The sell-off occurred shortly after the US Securities and Exchange Commission (SEC) identified 13 tokens issued by various foundations and companies or tied to protocols as securities. This led to some retail trading avenues like Robinhood ending support for tokens such as ADA, SOL, and MATIC.
Furthermore, recent lawsuits against major competitors Binance and Coinbase by US regulators have resulted in an increase in new accounts on crypto exchange Bitget in Latin America. New users in the region increased by 43% from June 6 to 9, with Brazil and Argentina leading market share growth. Bitget operates in Venezuela, Colombia, and Mexico, and its total deposits rose 134% in the region over the last few days.
In conclusion, the crypto market is experiencing turbulence amidst SEC scrutiny and false narratives, leading to a heavy sell-off. However, as Zhao suggests, traders should remain calm and manage their risk while continuing to use reliable and trustworthy exchanges like Binance and Bitget.