Bitcoin
Bitcoin Price Dips as SEC Accuses Binance of Misused Funds and Illegal Operations in the US
Bitcoin price dipped below the critical support level of $26,500 on Monday following the SEC’s accusation against Binance. At the time of writing, Bitcoin was trading 5.10% lower at $25,741.35. The asset’s total market cap has dipped below $500 billion to $499 billion, while its total volume pulled back further.
Binance vs SEC
The crypto market was in the red on Monday as Binance faced accusations from the SEC. The global crypto market cap fell 5.13% over the day to $1.09 trillion, while the total crypto market volume increased by 104% over the same period. Bitcoin’s dominance also fell over the day.
Bitcoin price was experiencing its worst day since March on Monday, as the crypto leader fell below its important support level. Ethereum, the second-largest cryptocurrency by market cap, also inched lower by nearly 5%. Altcoins such as Dogecoin, Shiba Inu, Litecoin, and many others were in freefall, moving in tandem with the heavyweights.
The US Securities and Exchange Commission (SEC) accused Binance, the world’s largest cryptocurrency exchange platform, of mishandling customers’ funds and operating an illegal trading platform in the US. According to the Wall Street regulator, Binance had been mixing billions of dollars in customer funds and secretly sending them to a secret company called Merit Peak Limited, which is controlled by Binance’s founder, Changpeng Zhao.
In the civil lawsuit filed in Federal District Court in Washington, SEC wrote that Binance engaged in “blatant disregard of the federal securities laws and the investor and market protections these laws provide.”
US regulators have been circling Binance for years, seeing it as the main target in their quest to bring to heel an industry that is built around an explicitly anti-government ethos. The Department of Justice has been on Binance’s case, investigating the crypto exchange for money laundering.
Despite falling by more than 8% in the past week, Bitcoin price remains more than 56% higher in the year to date. Potential interest rate hikes by the Federal Reserve have also been weighing on the crypto market. markets are pricing in a 30% chance of the Fed raising its funds rate in its June meeting, following the robust jobs growth data released on Friday.
Bitcoin Price Technical Analysis
Bitcoin price has been under immense pressure for the past few days amid macroeconomic concerns and a slowdown in demand for cryptocurrencies. The digital currency is moving below and above the 50-day and 200-day exponential moving averages, as indicated on the daily chart. Bitcoin has continued moving below the descending trendline shown in yellow.
Bitcoin has also managed to move below the 50-day and 100-day simple moving averages (SMA), while its Relative Strength Index (RSI) inched lower to 36. The Moving Average Convergence Divergence (MACD) indicator, as well as the asset’s momentum, hint at a bearish trend.
Therefore, I expect the Bitcoin price to pull back further in the ensuing sessions before rebounding. A continuous downward trend will have bears eyeing the next support at the 200-day EMA at $25,200.50. On the flip side, a flip above the important resistance zone of $27,500 will give bulls momentum to push the price higher to $28,000.
BTC Price Chart
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its…
Bitcoin price has been showing signs of a potential short-term recovery over the past few days and even tapped its highest level in two weeks, above $26,500. The premier cryptocurrency has gained nearly 2% over the past week, erasing some of the losses made in the previous days. Even so, the asset remains 9% below in the month to date. Bitcoin’s total market cap has climbed by more than 1% over the last day to $518 billion, while the total volume of BTC traded over the same period decreased by more than 9%.
Inflation Concerns
Like most major altcoins, Bitcoin price noted a slight bearish initial response to the US Consumer Price Index (CPI) data published on September 13. Data released by the Bureau of Labor Statistics (BLS) showed headline inflation by the CPI came in at 3.7%, ahead of the predicted 3.6% year-on-year and higher than July’s 3.2% rate. Annual core CPI, which excluded food and energy prices, decreased to 4.3% in August, in line with forecasts and down from July’s 4.7% reading.
The Producer Price Index (PPI) data released on Thursday suggested bearable levels of inflation following a monthly increase of 0.7% and an annual increase of 1.6% in August. The monthly reading was higher than the estimated 0.4% increase. The core PPI came in at 0.2% for the month, in line with analysts’ expectations.
Retail sales data also published on Thursday…
Bitcoin price has been struggling to break above the crucial resistance level of $26,500 for the past few days. The premier cryptocurrency has slumped by more than 13% in the month to date but remains 56% higher in the year to date. Bitcoin’s total market cap is a formidable $503 billion, down by more than 20% compared to its highest level so far this year of $612 billion. At the time of writing, the Bitcoin price was trading 1.50% lower at $25,797.25.
Fundamentals
Just like most altcoins, Bitcoin, the biggest cryptocurrency by market cap, has been in consolidation mode in recent trading sessions amid a strong bear market. Ethereum, the largest altcoin by total market cap, has been hovering below the important resistance level of $1,700 after facing a strong rejection at the level. According to Coinmarketcap, the global crypto market cap remains lower at $1.04 trillion, while the total crypto market volume increased slightly over the last day.
The Crypto Fear & Greed Index, which is a key measure of the crypto market sentiment by its participants, was at a fear level of 37 on Friday. This is a slight decline from the fear level of 40 recorded earlier this week. Additionally, it indicates that the risk appetite among investors has inched lower compared to last month’s neutral level of 49.
Focus will now be on the US Federal Reserve ahead of its two-day policy meeting…
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