Bitcoin, the world’s largest and most popular virtual currency, failed to maintain its upward stance and dropped near $27,000 on Tuesday morning.
Bitcoin reached its highest level in months on Wednesday, reaching $28,889, but plummeted after the United States Federal Reserve announced a rate rise. Bitcoin has increased by 62.7% since the beginning of the year.
Although, the upticks in the BTC seem to be fading as it dropped to near below $27,000 on the day.
However, the reason for its losing streak could be attributed to the lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance and its founder Changpeng Zhao.
It is worth noting that the US Commodities Futures Trading Commission (CFTC) has sued Binance, the largest cryptocurrency exchange, and its founder, Changpeng Zhao, accusing them of operating an unregulated exchange and a fake compliance program.
The global crypto market is now starting to feel the effects of the CFTC action against Binance, with Bitcoin falling below $27,000, a decrease of more than 3% in the preceding 24 hours. Meanwhile, Ethereum (ETH), which is following the same trajectory as Bitcoin, is down 3% and trading at $1,712.76.
Impact of CFTC Lawsuit Against Binance
The Commodity Futures Trading Commission (CFTC) has filed a complaint against Binance and its CEO for operating an illegal exchange and a fake compliance program.
However, this announcement has had a detrimental influence on the price of Bitcoin (BTC). Plus, the problem has raised uncertainty in the cryptocurrency market and prompted worries about the regulation of cryptocurrency exchanges.
Investors seem worried that this lawsuit will lead to more scrutiny of the sector by regulators, which could impact the growth and use of cryptocurrencies.
However, the announcement has also fueled possibilities of more governmental crackdowns, which will likely impose a negative impact on investor confidence and a dip in the value of BTC.
As a result of the bad news, Bitcoin dropped by more than 3%, from roughly $28,889 to around $27,000. Nevertheless, the price has already rebounded marginally, and it is uncertain whether the lawsuit will have a long-term influence on BTC’s worth.
MicroStrategy’s $150 Million Bitcoin Purchase Suggests Growing Institutional Confidence in Crypto Market
Billionaire Michael Saylor recently invested $150 million in Bitcoin, sparking discussions about the future of the cryptocurrency’s value and its impact on the market. It is worth noting that Saylor is a known advocate for Bitcoin and his investment signals growing confidence in the cryptocurrency.
However, the purchase of $150 million in Bitcoin by MicroStrategy has fueled speculation about the cryptocurrency’s possible bullish turn. The move shows that institutional investors are returning to the market, which might be a sign of increased trust in Bitcoin.
This announcement as well as increasing whale activity on the network shows that major investors are becoming more involved in the crypto market. Thereby, Bitcoin’s price is predicted to remain optimistic in the future.
Thus, this positive news was seen as one of the key factors that will likely help BTC to limit its recent losses.
The current Bitcoin price is $26,914, and the 24-hour trading volume is $18.4 billion. Bitcoin has fallen by nearly 3.5% in the previous 24 hours. Based on technical analysis, the BTC/USD pair currently displays a bullish trend. Nevertheless, it may encounter resistance upon reaching the $28,950 level.
Should Bitcoin manage to break through the resistance level of $28,950, it might propel its value upwards to $29,250 or possibly $30,500.
On the other hand, if a bearish trend materializes, support levels around $26,500 and $25,500 are anticipated to provide substantial support.
At the moment, the price of Ethereum stands at $1,724, and it has experienced a 24-hour trading volume of $8.5 billion. Over the past 24 hours, Ethereum has seen a decline of 1.50%.
Currently, Ethereum is struggling to break through the resistance level of $1,840 and has been consistently trading near the $1,700 support zone.
If the ETH/USD pair manages to surpass the $1,800 level, it is expected to encounter resistance at the $1,900 mark.
Support levels for the ETH/USD pair are expected to be at either $1,700 or $1,620.
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