Overview of Recent Bitcoin Price Movement
• Bitcoin reached its highest level in months on Wednesday, reaching $28,889.
• After the announcement of a rate rise by the US Federal Reserve, Bitcoin dropped near $27,000 on Tuesday morning.
• As a result of the CFTC lawsuit against Binance and its founder Changpeng Zhao, Bitcoin fell below $27,000 with Ethereum (ETH) following closely behind.
CFTC Lawsuit Against Binance
The Commodity Futures Trading Commission (CFTC) has filed a complaint against Binance and its CEO for operating an illegal exchange and a fake compliance program. This news has caused uncertainty in the cryptocurrency market as investors worry that this would lead to more scrutiny from regulators which could negatively impact the growth of cryptocurrencies.
Impact on Bitcoin and Ethereum Prices
As a result of the CFTC lawsuit announcement, Bitcoin dropped by more than 3%, from roughly $28,889 to around $27,000. Meanwhile Ethereum (ETH) also decreased by approximately 3% and is now trading at around $1,712.76.
MicroStrategy’s Investment in Bitcoin
Billionaire Michael Saylor recently invested $150 million in Bitcoin which sparked discussion about institutional confidence in crypto markets and their potential for long-term investments. This is seen as potentially positive for cryptocurrencies such as BTC and ETH as it brings attention to them as legitimate investments which could drive up their prices over time if these investments are successful.
It is uncertain whether or not the CFTC lawsuit will have any long-term impact on cryptocurrency prices but it seems likely that they will eventually bounce back given the growing institutional interest in them due to large investments made by companies such as MicroStrategy. Therefore it is possible that both BTC and ETH may retest their triple bottom at around $26,650 before returning to their previous levels or even higher depending on investor sentiment towards cryptocurrencies going forward.