Share:

Market picture

Bitcoin is down 2.6% in the last 24 hours to $27K. The crypto market's total capitalisation fell 1.9% to 1.14 trillion. The decline was triggered by the CFTC's surprise lawsuit against Binance. According to the agency, the platform violated derivatives trading rules by operating without proper registration. Its issued coin, BNB, lost more than 5% overnight.

According to CoinShares, investments in cryptocurrencies rose last week for the first time after six weeks of decline, amounting to $160 million - the highest in the previous eight months.

Investments in Bitcoin increased by $128m, while Ethereum decreased by $5m due to investor concerns about the traditional financial sector (TradFi), suggest Coinshares.

As with FTX, it is difficult to question the viability of Bitcoin or Ethereum. However, investors should ask themselves again: Are my funds safe? If banks are a risk, crypto exchanges are an even more significant risk. But is cash and crypto so risky in cold wallets?

News background

Changpeng Zhao, head of major cryptocurrency exchange Binance, has denied allegations made by the Commodity Futures Trading Commission (CFTC). He said the CFTC's claim contained an "incomplete statement of facts" and was "unexpected and disappointing". Zhao pointed to the firm's mandatory KYC programme, blocking US users, interaction with authorities and commitment to transparency.

Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, described the CFTC's lawsuit as an attempt to deal a fatal blow to Binance and did not rule out that the authorities "have a good chance of success". The regulator classified BTC, Ethereum, Litecoin, USDT and BUSD as "commodities" in the lawsuit.

According to Thanefield Capital, exchange customers withdrew more than $1 billion from their accounts overnight following the CFTC's lawsuit. According to Coinglass, Binance users started 3,611 BTC overnight. Binance's spot market share shrank by nearly 10% in a week.

After a month of litigation, US authorities secured a $1 billion settlement between bankrupt crypto lender Voyager and Binance.US.

Speculators have stepped up transfers of BTC to exchanges, confirming profit-taking, Glassnode noted. However, most investors are willing to hold the coins for longer, hoping that the uptrend will continue.

Under pressure from critics, the UK government has abandoned the Royal Mint's plans to issue non-exchangeable Royal Mint NFT tokens.

Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders

This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders

Lido DAO price is following the rest of the market due to the regulatory events that transpired in the last few days. However, the DeFi token is generally unlikely to pursue the path set by any other cryptocurrencies, including the likes of Bitcoin. This might play in favor of LDO.

More Lido News

LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise

LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise

Chainlink price, after following the broader market cues, is nearing a key support level that was last visited by the coin in January this year. This has discouraged LINK holders to the point where selling has become a preferred option. However, newer investors are countering this selling by accumulating, preventing a severe decline.

More Chainlink News

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism (OP) price appears to have found support after a new buyer congestion zone came into effect to prevent the free fall. Accordingly, the Ethereum Layer 2 (L2) token is trading horizontally, giving bulls time to accumulate OP at affordable rates.

More Optimism News

Binance CEO addresses chat records disclosed by the SEC

Binance CEO addresses chat records disclosed by the SEC

Binance CEO Changpeng Zhao has issued an internal address to company staff, asking them to focus on work and developing products people can use. The internal memo comes after the United States Securities and Exchange Commission (SEC) disclosed chat records between Binance employees in an attempt to support its case against the largest crypto exchange by trading volume.

More Cryptocurrencies News

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend. 

Read full analysis

BTC

ETH

XRP