Bitcoin Remains Dynamic Amid Crypto and Banking Crisis

Bitcoin, the world’s first-ever cryptocurrency and the world’s largest crypto asset by market capitalization, has remained afloat despite the crisis in the crypto and banking sectors and even after regulatory tensions emerged when the Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, one of the largest centralized crypto exchanges in the world.

Bitcoin’s price immediately fell 3.6% and traded at $26,900 after Binance and its CEO Changpeng “CZ” Zhao were sued by the CFTC on Monday for allegedly violating trading regulations.

The crypto exchange platform is currently under investigation by several US financial regulators, including the Securities and Exchange Commission (SEC), federal prosecutors, and the Internal Revenue Service (IRS).

Apart from that, US Federal Judge Jennifer Rearden of the US District Court in New York temporarily suspends the proposed sale of the assets of bankrupt brokerage firm Voyager Digital to Binance US and granted the request for an emergency stay.

Despite all of this, it seems that the young crypto is continuing to stay afloat, as evidenced by the performance of Bitcoin’s premium features, which suggests that the lawsuit against Binance has no significant impact.

While the premium for the two-month contract is 3.5%, which is below the neutral threshold of 5%, it showed that there was no panic selling among holders, which could have quickly drop to zero or even negative if that had happened.

Additionally, following the price crash, Bitcoin traded flat and recorded a 1.6% gain in the past 24 hours and traded at $27,302 on Tuesday, which puzzled watchers and industry investors, as the Federal Reserve recently announced a 25 basis point interest rate hike. .

How and why Bitcoin manages to stay buoyant in this challenging environment is a mystery to many.

Alex Gladstein, director of strategy at the Human RightsFoundation, said this could be because the young crypto confirms a thesis. “I would say that warrants a thesis,” he said. saidadding that “Web3, blockchain, all those buzzwords over the years…and yet bitcoin continues to grow and it continues to help people.”

Data scientist Bennet Tomlin, who also hosts a podcast, Crypto Critics Corner, explain that “the frame I usually put around it is: bitcoin is an internet currency maintained by a network of computers, best suited for payments that the government or society would like to stop”.

As of 4:08 a.m. ET on Wednesday, Bitcoin had gained 4.11% in the past 24 hours and was trading at $28,081.47 with a 24-hour volume of $19,551,167,194, according to the latest. data from CoinMarketCap.