Bitcoin Price Drops After SEC Targets Binance, Coinbase

The price of Bitcoin (BTC) dropped instantly on June 5 after the US Securities and Exchange Commission (SEC) resolved to pursue legal action against Binance and Coinbase.

The asset price dropped from approximately $26,800 to $25,500 within 18 hours of the SEC’s lawsuit against the exchanges.

However, the crypto market experienced a recovery the following day, and Bitcoin remained above $26,000 until June 10. Yesterday, the asset’s price reached a local low of $25,675 as adverse sentiment grew.

Since late March, the BTC spent output profit ratio (SOPR) has remained above the one threshold, indicating that the market may still be accruing profitability.

According to an analysis by CryptoQuant, the current SOPR position is comparable to the robust bull markets of 2015 and 2019, when the SOPR ratio remained above 1 for at least three consecutive months.

In addition, the analysis suggests that another consistent bull run may be on the horizon because there has not been significant selling pressure at the current price.

Moreover, on-chain data indicates that investors have been attempting to hold their bitcoins, as the number of lost and HODLed coins recently surpassed 7,749,322 BTC, representing a five-year peak of more than $200 billion.

Bitcoin has gained 0.3% in the past twenty-four hours and is trading at $25,850 as of this writing. However, its 24-hour trading volume has decreased by 21.6% to $11.4 billion, indicating reduced network activity.