Solana, Avalanche and BNB Suffer Double-Digit Losses as Investors Trim Positions

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Tue, 06/07/2022 - 14:27
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The cryptocurrency market once again tumbled under selling pressure as investors pulled gains.

Solana (SOL), Avalanche (AVAX) and Binance Chain's BNB are down 12.24%, 11.46% and 8.81%, respectively, over the past 24 hours, according to data provided by CoinMarketCap.

The cryptocurrency market once again showed a positive correlation to equities during the sell-off, as Nasdaq futures experienced a 0.95% decline at the same time as Bitcoin plunged from $31,362 to $29,184.

More than $214 million worth of positions on derivatives exchanges have been liquidated in the past 24 hours, according to Coinglass. Solana suffered liquidations of positions worth nearly $8.31 million.

A day earlier, Bitcoin and altcoins posted significant gains as the crypto market staged an impressive comeback after taking a hit. On June 7, the price of Bitcoin slipped to an intraday low of $29,184, dropping nearly 6% from the recent high.

BNB tumbles on SEC's investigation

As previously reported by U.Today, the U.S. Securities and Exchange Commission has initiated an inquiry into Binance's BNB. The regulatory watchdog wants to know if the Binance exchange token is an unregistered security.

Binance launched its initial coin offering (ICO) in July of last year, in which a total of $15 million was raised through the exchange.

As stated, the investigation remains ongoing. According to speculators, the exchange may not face legal action from the regulator. BNB, which grew rapidly in 2021, is still the fifth largest cryptocurrency in terms of market capitalization. Binance's BNB dropped roughly 5% as the news broke.