SEC's lawsuit against Binance continues to shake the crypto market.
With the recent legal onslaught faced by Binance from the US Securities and Exchange Commission (SEC), the digital asset industry has been cloaked in a layer of uncertainty, mirroring the levels last experienced in March.
The SEC is holding Binance accountable for thirteen allegations. SEC's charges center on the violation of registration requirements and conducting unauthorized operations in the United States.
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Following the lawsuit, the cryptocurrency market sentiment experienced a significant slump. On June 5th, the Crypto Fear and Greed Index showed 53 before eventually falling to 44 on June 6th.
To evaluate the crypto market sentiment, the index put together various indicators such as price volatility, momentum, trading volume, social media activity, and Google trends data. Therefore, the index provides a comprehensive snapshot of the market's emotional pulse.
It is worth noting that, recently, there has been a significant downfall in "Crypto" searches on Google.
The SEC's legal maneuver against Binance largely impacted the fall in digital asset prices. On June 6th, top-tier cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) reported 24-hour losses of 4.20% and 3.05%, respectively.
Major altcoins were also dragged into the undertow. Cardano (ADA) and Solana (SOL) have sunk by 5.95% and 7.16% over the past 24 hours, respectively, painting a grim picture for the broader crypto market.
Thus, the recent lawsuit against Binance by the SEC has injected a wave of anxiety into the market, as indicated by the drop in the Crypto Fear and Greed Index. Legal actions of such magnitude have substantial repercussions on market sentiment.