Today in crypto, global trade concerns continue pressuring investor sentiment, risking a potential Bitcoin correction below the key $75,000 support level, and the US Securities and Exchange Commission has released a statement saying it does not view memecoins as securities as it drops its lawsuits against Coinbase, Consensys and Gemini.
Bitcoin risks deeper drop if $75K support fails amid macro concerns
Bitcoin risks more downside if it loses a “key” $75,000 support amid growing concerns over a potential trade war between the United States and China.
Bitcoin’s (BTC) price has fallen more than 6.5% during the past 24 hours to sink below a low of $78,197, which was last seen on Nov. 10, 2024, Cointelegraph Markets Pro data shows.
Analysts attribute the current decline to macroeconomic concerns related to a potential trade war between the US and China caused by US President Donald Trump’s decision to impose import tariffs.
BTC/USD, 1-year chart. Source: Cointelegraph
These macroeconomic concerns were the main reason for Bitcoin losing the $80,000 support, according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
“Bitcoin’s drop below $80,000 amid investor fear from Trump’s tariffs and market unrest, points to a correction likely hitting $76,000-$78,000 this week, nearing $75,000 as a key support level based on historical patterns and trader sentiment.”
Still, some analysts are concerned that Bitcoin’s correction may see the world’s first cryptocurrency revisit $70,000.
Based on its correlation with the global liquidity index, Bitcoin’s right-hand side (RHS), which marks the lowest bid price someone is willing to sell the currency for, may fall below $70,000 around the end of February, after it peaked near $110,000 in January.
SEC says memecoins aren’t securities, but fraud will still be policed
The US Securities and Exchange Commission says it does not view memecoins as securities but warned any fraudulent tokens could still be subject to enforcement actions by other regulators.
The agency’s Division of Corporation Finance said in a Feb. 27 statement that, in its view, memecoins “do not involve the offer and sale of securities under the federal securities laws” and “are akin to collectibles.”
Source: David Sacks
“As such, persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission,” the SEC said.
It added that memecoin buyers and holders wouldn’t be protected by US securities laws but said the fraudulent offer and sale of memecoins “may be subject to enforcement action or prosecution by other federal or state agencies.”
SEC agrees to drop Consensys lawsuit
The US Securities and Exchange Commission has agreed in principle to drop its lawsuit against crypto firm Consensys — the developer of MetaMask. The suit claimed that aspects of MetaMask violated securities laws.
According to Ethereum co-founder and Consensys founder Joseph Lubin, the SEC has agreed to file a motion effectively ending the case, and the conclusion of the litigation is still subject to final approval from the commission. Lubin added:
“Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.”
Consensys attorney Bill Hughes told Cointelegraph that the agreement to drop litigation was fairly straightforward and that the SEC would not impose any fines or conditions on Consensys as part of the lawsuit dismissal.
“The litigation team on their side understood that the SEC was going to be moving in a new direction,” Hughes said and attributed the federal agency’s regulatory pivot to a change in leadership and the pro-crypto policies of the Trump administration.
“There was definitely a tenor change in the conversations post-election,” between Consensys and the SEC, the attorney added.
Source: Joseph Lubin
Consensys was sued by the SEC in June 2024. The agency alleged that the company made more than $250 million in fees by offering staking services and digital asset swaps through MetaMask.
Related: SEC dismisses lawsuit against Coinbase
