Coinbase Plummets 15% After SEC Lawsuit: Market Reacts

• Coinbase drops 15% in pre-market trading after SEC lawsuit.
• Open interest grows $500M before SEC lawsuit with Binance, highest level since SVB collapse.
• Looming June FOMC meeting roils Bitcoin market.

Coinbase Drops 15% After SEC Charges

Yesterday saw the biggest cascade of long liquidations of 2023 and Coinbase (COIN) dropped 15% in pre-market trading after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the exchange for multiple securities law violations. The stock is now trading below $50.00, 8% lower than its previous Monday’s closing price

Bitcoin Open Interest Rises Before SEC Lawsuit

Before the news broke out about the lawsuit against Coinbase, open interest for Bitcoin grew $500 million with Binance, marking its highest level since the collapse of SVB last year

On-Chain Analysis Of The SEC Lawsuit

CryptoSlate’s latest market report dives deep into on-chain analysis to dissect the implications of the SEC’s lawsuit against Coinbase

June FOMC Meeting And Its Effects On Bitcoin Market

The Federal Reserve Board’s upcoming June FOMC meeting may create more volatility in the cryptocurrency markets as investors closely watch for any updates from central banks

Conclusion

Coinbase has been charged by the SEC with multiple securities law violations and this has caused its share prices to drop significantly in pre-market trading. However, Bitcoin open interest rose before this news broke out and CryptoSlate’s latest market report provides an on-chain analysis of how this will affect Coinbase and other cryptocurrency markets. Finally, investors are keeping a close eye on what will be discussed at the upcoming June FOMC meeting as it could cause further volatility in these markets.