Category: Cryptocurrency News

Monthly trading volumes on centralized exchanges continued to fall in May as regulators tighten their grip on the industry.

According to sources on June 6, Bitcoin is trading at a $2,000 premium on Binance US, an exchange the United States Securities and Exchange Commission (SEC) claims is controlled by Changpeng Zhao and Binance Global. According to screenshots widely circulated on Twitter, BTC, at one point, was reportedly trading at $28,505, a price level that was roughly $2,000 higher than the global BTC average of around $26,500 at the time. Bitcoin Trading At A $2,000 Premium on Binance US From price charts, Bitcoin remains volatile even at spot rates. Less than 24 hours after slumping to as low as $25,900 on June 5, the coin reversed losses on June 6.  Yesterday, the price of BTC surged, reaching levels as high as $27,000. This upward movement contradicted the bearish forecasts that analysts had previously made for June 5. Additionally, this positive price movement helped alleviate concerns that the SEC lawsuit against Binance would hurt the value of BTC. Related Reading: Bitcoin 24-Hour Volatility Soars, Why Bulls Could Win Fight In Short-Term Tumbling Bitcoin and crypto prices on June 5 coincided with accusations from the US regulator. The SEC listed 13 charges against Binance, including that together with the Binance US, the exchange allegedly enabled US citizens to illegally trade a wide range of cryptocurrencies. Moreover, the SEC pressed that Binance and Binance US were unregistered trading platforms that continue to offer “multiple unregistered offers and investment schemes” aimed at “defrauding equity, retail, and institutional investors about purported surveillance and controls over manipulative trading.” In response to the SEC’s lawsuit, on-chain data from Nansen shows that investors have continued to pull billions worth of crypto assets from Binance Global and Binance US.  The analytics platform observes that over $3 billion of assets from multiple chains have been withdrawn from Binance. Out of this, over $1.3 billion was from Ethereum.  Intervention Fueling Bitcoin’s Demand Meanwhile, Binance.US has suspended its over-the-counter (OTC) trading platform and reduced the number of supported trading pairs.  The announcement of Binance US’ changes affects roughly 90 pairs of the USDT, BTC, and BUSD pairs. It is also unclear when Binance US will resume its OTC trading services. Related Reading: Shiba Inu (SHIB) Price Could Soar To Major Highs Soon, Here’s Why Furthermore, Binance US has reduced the trade and convert options to USDC, USDT, Bitcoin, Ethereum, and some of the top crypto assets, including Cardano’s ADA. However, while there is a limitation on which assets existing clients can convert to, Binance US has placed caps on the maximum buy, sell, and convert options to USD at $10,000.  The suspension of the Binance US OTC platform and caps on USD conversion and assets could explain why Bitcoin is a highly sought asset and trading at a $2k premium in the United States for clients who used Binance US.  SEC and the Commodity Futures Trading Commission (CFTC) have previously stated that Bitcoin is a commodity. Feature Image From Canva, Chart from TradingView

Speaking in a Twitter Space hosted by Coinbase on June 7, Ryan Selkis praised the new crypto bill for providing new firms with a clear path to compliance.

Ethereum price is moving lower from the $1,900 resistance against the US Dollar. ETH could decline heavily if there is a clear move below the $1,800 support. Ethereum is still struggling to clear the $1,900 and $1,920 resistance levels. The price is trading below $1,880 and the 100-hourly Simple Moving Average. There is a major bearish trend line forming with resistance near $1,855 on the hourly chart of ETH/USD (data feed via Kraken). The pair could still struggle to clear the $1,900 resistance zone. Ethereum Price Dips Again Ethereum’s price started a fresh increase from the $1,775 zone. ETH climbed above the $1,850 resistance but the bears were again active near the $1,900 zone, similar to Bitcoin. A high is formed near $1,898 and the price is now moving lower. There was a break below the $1,850 support zone. The bears pushed the price below the 50% Fib retracement level of the upward move from the $1,777 swing low to the $1,898 high. Ether is now trading below $1,880 and the 100-hourly Simple Moving Average. There is also a major bearish trend line forming with resistance near $1,855 on the hourly chart of ETH/USD. It is now holding the $1,820 support and the 61.8% Fib retracement level of the upward move from the $1,777 swing low to the $1,898 high. Immediate resistance is near the $1,855 zone and the trend line. The next major resistance is near the $1,900 level or the recent high. Source: ETHUSD on TradingView.com A proper move above the $1,895 and $1,900 resistance levels might send Ether toward $1,920. The next resistance sits near $1,950, above which Ethereum could rise toward $2,000. Any more gains above the $2,000 resistance zone might send the price toward the $2,040 resistance. More Downsides in ETH? If Ethereum fails to clear the $1,855 resistance, it could continue to move down. Initial support on the downside is near the $1,820 level. The next major support is near the $1,800 level. If there is a break below the $1,800 support, the price could decline toward the $1,740 support. Any more losses may perhaps send the price toward the $1,700 level or even $1,660 in the coming sessions. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is below the 50 level. Major Support Level – $1,800 Major Resistance Level – $1,900

Bitcoin price is correcting lower from the $27,400 resistance. BTC could start a fresh increase if it is able to clear the $26,600 resistance zone. Bitcoin started a fresh decline after it failed to clear the $27,400 resistance. The price is trading below $26,600 and the 100 hourly Simple moving average. There is a key declining channel forming with resistance near $26,580 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could attempt a fresh increase if it clears the $26,580 and $26,600 levels. Bitcoin Price Holds Support Bitcoin price was able to climb back above the $27,000 level. BTC even climbed above $27,200 before the bears appeared near the $27,400 zone. A high was formed near $27,368 before the price started a fresh decline. There was a move below the $27,000 support zone. The price declined below the 50% Fib retracement level of the upward move from the $25,368 swing low to the $27,368 high. Bitcoin price is now trading below $26,600 and the 100 hourly Simple moving average. There is also a key declining channel forming with resistance near $26,580 on the hourly chart of the BTC/USD pair. However, it is holding the $26,200 support and the 61.8% Fib retracement level of the upward move from the $25,368 swing low to the $27,368 high. Immediate resistance is near the $26,580 level and the channel zone. The next major resistance is near the $26,600 level. A close above $26,600 might send the price further higher. Source: BTCUSD on TradingView.com The next key resistance is near the $27,000 level. A clear move above the $27,000 resistance might call for a move toward the $27,400 resistance. Any more gains above the $27,400 resistance zone might send the price toward the $28,500 resistance zone. More Losses in BTC? If Bitcoin’s price fails to clear the $26,600 resistance, it could continue to move down. another decline. Immediate support on the downside is near the $26,200 level. The next major support is near the $25,840 level, below which the price might gain bearish momentum. In the stated case, the price could drop toward the $25,400 support. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level. Major Support Levels – $26,200, followed by $25,840. Major Resistance Levels – $26,600, $27,000, and $27,400.

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Binance Coin (BNB) has been one of the top-performing cryptocurrencies in recent years, with its value rising significantly since its launch in 2017. However, the coin has experienced a sharp decline in value following the recent Securities and Exchange Commission (SEC) complaint against Binance.US and increased regulatory oversight by the US watchdog. Currently, BNB is trading at $260, down by over 7% and 14% in 24 hours and the last seven days, respectively. This drop has been attributed to the recent regulatory scrutiny, as well as broader market trends. Related Reading: Bitcoin 24-Hour Volatility Soars, Why Bulls Could Win Fight In Short-Term BNB Price Drop Spells Trouble The BNB bridge suffered an exploit that has put Binance Coin in a precarious position, with a potential liquidation of $200 million on Venus Decentralized Autonomous Organization (DAO) looming if the price drops by 14% to $220.  Venus DAO is a community-driven organization that governs the Venus Protocol, which is a decentralized lending and borrowing platform built on the Binance Smart Chain. The Venus Protocol allows users to borrow and lend cryptocurrencies, and earn interest on their holdings. According to the researcher DeFi Ignas, the exploit occurred on October 7th, 2022, when an attacker minted 2 million BNB ($593 million)) and deposited 900,000 BNB as collateral to Venus. They then borrowed other assets on Venus to launder as much money as possible. This is the single largest potential liquidation in all of Decentralized Finance (DeFi) and cannot be closed. Following the exploit, BNB Chain was halted to upgrade the network, and the Binance Bridge hack now ranks as the third-largest overall hack. All three of the top hacks have been cross-chain bridge exploits, highlighting the vulnerabilities of the DeFi ecosystem. According to Ignas, to prevent any cascading liquidations, the BNB Chain will liquidate the position itself. However, the good news is that Venus DAO has voted to whitelist BNB Chain as the sole liquidator of the BNB exploiter address. This move should help to prevent any further market disruptions and provide some stability to the market. Binance.US Netflow Plummets Blockchain and data research firm Nansen has reported that the net outflows from major cryptocurrency exchanges Binance and Coinbase have decreased in the 24 hours following the news of the SEC’s lawsuit against Coinbase. The outflows retraced to $491.9M and $105.3M, respectively. This is in contrast to the situation 24 hours after the SEC sued Binance when Binance’s netflow was $78M positive. However, after the SEC filed to seek a temporary restraining order to freeze Binance’s US assets, Binance’s netflow turned negative, dropping to -$123.6M. Related Reading: Late Evidence In Criminal Trial Irks SBF, FTX Explores Options For AI Stock Sale The decrease in net outflows from Binance and Coinbase suggests that investors are becoming more cautious in light of the SEC’s legal actions against major cryptocurrency exchanges. The SEC’s lawsuit against Coinbase, in particular, has raised concerns about the regulatory scrutiny faced by the crypto industry as a whole. Featured image from Unsplash, chart from TradingView.com   

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