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 dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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