The biggest cryptocurrency surged past $27k, nearly 6 per cent higher over the last 24 hours

Cryptocurrency prices recouped on Tuesday with bitcoin leading the gainers a day after a large scale sell-off sparked by the U.S. Securities and Exchange Commission (SEC) suing Binance, and in spite of a second suit against Binance competitor Coinbase.

The biggest cryptocurrency in terms of market capitalization recently surged past $27k, nearly 6 per cent higher over the last 24 hours. On Monday, bitcoin dropped near $25,400 as investors, already nervous from months of digital asset failures, rejected crypto after the Securities and Exchange Commission stated Binance had breached securities law.

The wider crypto market also recovered since Monday, although somewhat less than bitcoin. Ether, the second biggest crypto in terms of market value, was recently trading marginally below at $1,900, 4.5 per cent higher from Monday. ADA and SOL, the tokens of the smart contract platforms Cardano and Solana, recently added over 1 per cent a day after slumping over 8 per cent and 10 per cent, respectively. Binance’s BNB native token was also in positive region, while Polygon’s MATIC was 1 per cent lower. The Securities and Exchange Commission listed those tokens as well as nine others as unregistered securities in the two lawsuits.

Notably, the Securities and Exchange Commission avoided mentioning bitcoin and ether in its filings against Binance and Coinbase, an encouraging sign for investors that U.S. regulators consider both tokens commodities.

In a market report on Tuesday, Vetle Lunde, senior analyst of crypto research firm K33 Research, deemed bitcoin’s initial sharp drop after the Binance lawsuit an overreaction.

Bitcoin is classified as a commodity, Lunde stated. Americans can buy bitcoin via a range of exchanges, exchange-traded funds, payment apps, and more. Liquidity could consolidate further towards Coinbase and Kraken, but the market should not crash 5 per cent on these developments.

And in another market report, senior market analyst Edward Moya at trading platform Oanda, stated that the Securities and Exchange Commission clampdown on altcoins could even benefit bitcoin.