Crypto Wrap: Market Stalls Amid Regulatory Crackdown on Binance

The crypto market traded sideways last week amid a crackdown on top crypto exchange Binance. Earlier this week, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance for trading against customers, abusing internal trading channels, and creating unregulated derivatives markets.

This was followed by Bitcoin, the largest crypto token by market cap, hitting its highest level of $29,000 since last June. But soon he fell from the heights. On Friday, it was trading at $27,923, down 0.45% from last week.

Ethereum, the second largest digital token, rose 0.33% to $1,794 last week.

“Surprisingly, last week it was not the securities regulator SEC but the commodities regulator CFTC, which launched a series of charges against Binance. Binance plans to fight these claims in court,” said said Parth Chaturvedi, Head of Crypto Ecosystem at Crypto Exchange. Corner Switch.

“Today, BTC is consolidating above the crucial $28,000 level, likely driven by the US GDP report. An uptrend line is in place offering support around $27,900,” said Alankar Saxena, CTO and co-founder of crypto company Mudrex.

Recently released US GDP data noted a slowdown in the growth rate from 3.2% in the prior quarter to 2.6% in the fourth quarter of 2022-23 (FY23).

“While Bitcoin and Ethereum showed an upward trend at the end of the week, many ongoing challenges still need to be resolved for the industry before a lasting move is seen,” said Anurag Dixit, Founder. from crypto company Kunji.

According to Saxena, Bitcoin is currently facing resistance in the $28,500-$28,850 area, and its main uptrend support remains solid. However, he lacks the momentum for a “meaningful move”.

A major event to watch in the coming days is the significant drop in liquidity and trading volumes, especially on Binance.