The Securities and Exchange Commission (SEC) has set its sights on two major trading platforms – Binance and Coinbase. The lawsuit against Coinbase is particularly noteworthy as it mentions several popular cryptocurrencies that the SEC deems securities. This undoubtedly poses a blow to the cryptocurrency market, which logically anticipates further developments in an unfavorable direction.
At the same time, it is worth noting that Bitcoin (BTC) has responded relatively calmly to the news of lawsuits against the largest crypto exchanges. This can be attributed to holders of those altcoins mentioned in the Coinbase lawsuit choosing to withdraw a portion of their assets rather than completely exiting the crypto market. Instead, they have shifted their capital to Bitcoin, considering it a more reliable digital asset. This is a prudent investment idea given the current circumstances. The current Bitcoin price appears quite attractive for entry.
However, it should be understood that this is not a short-term investment, and Bitcoin is unlikely to experience significant upward or downward movement in the coming weeks. I anticipate a few weeks of relatively flat trading. This is not only due to regulatory uncertainty, which has intensified following the SEC’s lawsuits against Binance and Coinbase, but also the upcoming mid-month Federal Reserve meeting, where the majority of investors expect the key interest rate to remain unchanged.
Thus, entering Bitcoin now seems like a sensible and effective move for those who wish to increase their presence in the crypto market while being mindful of potential issues surrounding altcoins.
In addition to Bitcoin, attention should be given to tokens of decentralized crypto exchanges, which are expected to attract new users and strengthen their position in the global market amid stricter regulation in the United States. However, there is a risk that these tokens may also be classified as securities. Therefore, altcoins currently carry a considerable level of risk, and high volatility can be expected.
