As Bitcoin’s price hovers at $29,366, reflecting a slight 0.22 percent decrease on Sunday, concerns arise about the declining daily trading volume, potentially signaling a departure of whales from the market.
Adding to the uncertainty, SEC Chair Gary Gensler highlights the highly speculative nature of cryptocurrency, with fraud being a prevalent issue.
Moreover, the recent reservations expressed by the German authority concerning Binance’s CEO have led to the withdrawal of their license application, adding further complexity to the crypto landscape.
SEC Chair Warns of Cryptocurrency Risks and Fraud in Speculative Market
The value of BTC/USD is currently declining due to comments made by SEC Chair Gary Gensler regarding the risks and concerns surrounding the cryptocurrency market.
Gensler has characterized crypto as a highly speculative asset class that is “rampant with fraudulent activity” and has cautioned investors about the absence of securities law protections within this space.
It has been pointed out that cryptocurrency platforms employ practices that are not allowed in conventional securities markets. This has caused concerns and potential risks for investors.
The SEC is seeking additional resources to regulate the crypto industry, which may make market participants more cautious.
As a result, there has been a recent decline in the BTC/USD market as investors reevaluate their positions.
German Authority Withdraws License Application, Causing Market Uncertainty for Investors
There are concerns about Binance’s CEO that are impacting the fall of BTC/USD today.
Binance is one of the world’s largest crypto exchanges. Reports suggest that the German Federal Financial Supervisory Authority (BaFin) has advised Binance to withdraw its licensing application due to concerns about the “fit and proper” status of Binance’s CEO Changpeng Zhao, also known as “CZ,” and the company’s structure being hindered.
There have been recent actions taken by SEC and CFTC against Binance for allegedly violating securities laws.
Additionally, the Department of Justice is investigating potential violations of US sanctions on Russian entities.
These events have caused some market uncertainty and may be contributing to the current decline in BTC.
Bitcoin Price Prediction
Bitcoin experienced significant backing as it surged to the $29,000 level. This is evidenced by several candle patterns, including Doji and spinning top, that closed above this threshold.
At present, Bitcoin is trading just below the $29,500 resistance, which is strengthened by a downward trend line visible on the four-hour chart.
If Bitcoin manages to exceed the $29,500 level, it may face a challenge at the psychologically significant $30,000 mark. Moreover, the subsequent potential resistance lies at $30,350.
Conversely, if Bitcoin drops below $29,000, the next support level is approximately $28,800.
A further decline below this point could lead to a potential drop towards $28,250.