Bitcoin (BTC), the world’s most valuable cryptocurrency, has experienced a recent downward trend, falling below $26,000 for the first time since March. Within an hour, BTC dropped by over 4%, reaching a low point of around $25,750, the lowest since March 16.
Despite hopes of surpassing the $27,000 milestone, Bitcoin failed to do so and declined further to around $25,000. This downward trend was primarily driven by investor concerns following the announcement of the SEC’s lawsuit against Binance, a prominent cryptocurrency exchange.
The news of the lawsuit and its impact on investor sentiment has resulted in a significant drop in prices, with Bitcoin and Ethereum both down by more than 4% and 3%, respectively. Other altcoins are also experiencing declines.
The options and futures markets indicate that the bearish trend in Bitcoin is still ongoing. However, the overall structure of the crypto market has not been significantly affected at this point.
Given the uncertainty surrounding the SEC’s actions and the lengthy process of court rulings, investors are cautious and hesitant to make strong bids.
Currently, Bitcoin is priced at $25,804.50, with a 24-hour trading volume of $20,267,625,474. Over the past 24 hours, Bitcoin has experienced a decrease of 3.83%.
Bitcoin Faces Turmoil: SEC Lawsuit Against Binance and Bankruptcy Filings Create Uncertainty
As mentioned earlier, Bitcoin faced a significant drop, falling to $25,500, after the SEC’s announcement of a lawsuit against Binance and its CEO, CZ. However, this news prompted a sharp reaction in the market, leading to a 5% decrease in Bitcoin’s value within an hour.
Investors are trying to understand how the SEC’s lawsuit against Binance and its CEO will affect Bitcoin’s future. They are carefully analyzing the situation and its potential impacts.
According to experts like Arca CEO Jeff Dorman, even if Binance has to close its operations in the US, it will not have a major impact. They think that previous non-criminal charges should not disrupt Binance’s operations.
But, on the other side, it is also true that the overall mood in the crypto market is negative. However, many people in the crypto community are showing their support for CZ and Binance.
Furthermore, some other concerns surround Digital Currency Group (DCG) and its subsidiary Genesis Capital.
They recently filed for bankruptcy, and there are reports that DCG CEO Barry Silbert withdrew a whopping $1 billion from his personal holdings when cryptocurrency hedge fund Three Arrows Capital encountered some troubles.
This news adds to the existing uncertainty in the crypto market. It could potentially have a negative impact on Bitcoin (BTC), as investors may become more cautious and hesitant in their approach to the cryptocurrency.
Cryptocurrency Market Slumps Amidst SEC Lawsuit Against Binance
The global cryptocurrency markets have taken a hit due to some bad news. It is worth noting that the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its US subsidiary, and founder Changpeng Zhao.
This caused the global crypto market cap to drop to $1.09 trillion, with a 24-hour loss of 3.89 percent. Even Bitcoin’s fear and greed index remains neutral in light of these events. Bitcoin (BTC) and Ethereum (ETH) are down by more than 4% and 3%, respectively. Apart from them, other popular altcoins are going through a tough time.
Investors are excited about the upcoming release of the FOMC meeting minutes, which is set to happen on June 14. These minutes contain important information about the discussions and decisions made by the Federal Reserve, which can have a big impact on the market.
Concerns Rise as Cryptocurrencies Face Declines Amid Weaker U.S. Dollar
Despite a bearish US dollar driven by disappointing service sector data in May, cryptocurrencies faced significant declines on Tuesday. This fueled speculation that the Federal Reserve may pause its plans to hike interest rates due to indications of a slowdown in the US economy, limiting the Fed’s ability to continue with rate increases.
Consequently, the dollar index and dollar index futures dropped by 0.1%. Looking ahead, the Federal Open Market Committee (FOMC) is scheduled to make policy decisions on June 14.
The market anticipates a 77% probability of the Fed maintaining its current stance, a significant increase from the 36% chance estimated just a week ago, according to the CME FedWatch tool.
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