Bitcoin Rallies Above $27K as Crypto Market Shrugs Off SEC Lawsuits Against Binance, Coinbase

Takeaways:

Bitcoin is up 5.8%, leading the crypto market recovery after Monday’s sell-off.

BTC could benefit from investors ditching altcoins after the SEC deemed multiple tokens unregistered securities in lawsuits against Binance, Coinbase, one analyst said.

Cryptocurrency prices recovered on Tuesday with bitcoin (BTC) leading the charge a day after a mass sell-off triggered by the U.S. Securities and Exchange Commission (SEC) suing Binance, and despite a second suit against Binance rival Coinbase.

The largest cryptocurrency by market capitalization recently soared above $27,000, up almost 6% over the past 24 hours. On Monday, BTC fell near $25,400 as investors, already skittish from months of digital asset debacles, abandoned crypto after the SEC said Binance had violated securities law.

The broader crypto market also regained ground since Monday, albeit somewhat less than BTC. ETH, the second largest crypto by market value, was recently changing hands at slightly below $1,900, up 4.5% from Monday, same time. ADA and SOL, the tokens of the smart contract platforms Cardano and Solana, recently rose more than 1% a day after plunging more than 8% and 10%, respectively. Binance’s BNB native token was also in positive territory, while Polygon’s MATIC was down 1%. The SEC listed those tokens and nine others as unregistered securities in the two lawsuits.

The Coindesk Market Index (CMI), which tracks the price of a basket of tokens, recently rose 4.5%.

Bitcoin is benefitting

Notably, the SEC avoided mentioning BTC and ETH in its filings against Binance and Coinbase, a reassuring sign for investors that U.S. regulators consider both tokens commodities.