Bitcoin momentum has dwindled, and trades have returned to under $70,000, likely due to the Coinbase and SEC trials.
Bitcoin (BTC) and the crypto market had high hopes earlier this week, but the upward trajectory has now halted and receded. At the time of writing, BTC is currently trading at $68,600.
Meme coins, which have somewhat fueled this price rise, have also seemed to have died down, although trading volume on Solana and Base has been hitting all-time highs.
Despite the price drop, analysts and notable figures still have high hopes and are very optimistic about Bitcoin’s price reaching over $100,000.
24-hour chart of BTC from CoinMarketCap
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Court rules in favor of Coinbase over SEC
The price correction presumably occurred after the court announced that it rejected the SEC’s claim of Coinbase Wallet being an unregistered broker. The U.S. District Court for the Southern District of New York also denied the request to close Coinbase’s staking program.
Judge Katherine Polk Failla ruled that Coinbase engaged in the sale of securities, contrary to the SEC‘s allegations. The court partially granted Coinbase’s motion to dismiss the lawsuit, affirming it doesn’t act as an unregistered broker by offering its Wallet application.
The SEC’s lawsuit, filed on June 6, 2023, accused Coinbase of illegally combining brokerage, exchange, and clearing functions. It also targeted Coinbase Earn’s staking program, alleging a lack of customer protections due to unregistration.
Read more: Bitcoin’s move to new highs paused due to intense profit taking; expert says it’s ‘perfectly normal’
