Bitcoin Downtrend Persists
Bitcoin is still trending downward
MARKET PICTURE
Approximately reaching lows not seen since mid-March, Cornmarket reports that the total market capitalization of the cryptocurrency industry dropped 7.6% in a single week to $1.06 trillion. A significant sell-off in altcoins because of the SEC’s ongoing campaign against the cryptocurrency industry added to the market’s unease.
Given that Tether, the market’s largest issuer, opted to produce an additional 1 billion stable coins, USDT is in the most demand.
Once more serving as a sanctuary for investors, bitcoin had a temporary surge in demand as one of the most liquid assets on the market. However, the technical outlook is still negative.
The previous time-out produced a 20-week downturn, and Bitcoin ended the week below its 200-week moving average. Daily, there isn’t much to be happy about because the decrease is still occurring within the bearish range. However, a fix below $25,000, from which BTCUSD rallied over the weekend, is the only scenario in which the bears can be said to have finally prevailed.
At $1750, Ethereum was down 6.5%. XRP, one of the top 10 altcoins, changed from 3% to -28% (Solana) and 22% (BNB) for other top altcoins.
NEWS BACKGROUND
The whole cryptocurrency business has been impacted by the US government’s crackdown on the Binance and Coinbase exchanges. The SEC regards altcoins as securities, thus they have been particularly badly impacted.
Owners of cryptocurrency assets should sell their holdings, according to former SEC official John Reed Stark, because the storm in the US crypto business has only just begun. Laws and regulations that forbid manipulation, insider trading, and other fraudulent actions are not required by cryptocurrency exchanges. An ex-SEC officer claims that they lack control, provide inadequate customer protection, and fail to identify risks.
According to the company’s lawyer, Crypto’s YouTube blogger, Binance is ready to spend $1 billion to battle the SEC.
Bloomberg strategist Mike McGlone claims that the possibility of a bad stock market recession in the US, a gold hoarding trend paired with Fed policy tightening, and all these factors might negatively affect investor sentiment for cryptocurrencies. The riskiest assets may be pushed out of investment portfolios because of the pressure.
Ethereum programmers finalized the specifics of a later this year anticipated network update named Dencun (Cancun-Deneb) during a conference call.