Bitcoin and Ethereum, two leading cryptocurrencies, have recently experienced significant developments due to the US Securities and Exchange Commission (SEC) lawsuit, the bankruptcy of FTX exchange, and the acquisition deal involving BitGo. These events have brought new dynamics to the crypto market, impacting the price predictions for both digital assets.
The cryptocurrency market has had a turbulent week due to lawsuits filed against major exchanges Binance and Coinbase by US securities authorities. Lawmakers have criticized the enforcement actions taken by the SEC against cryptocurrency exchanges, describing them as showing a “complete contempt for Congress.” There has been scrutiny directed at SEC Chair Gary Gensler and the agency’s approach to regulating the cryptocurrency industry.
Representative Ritchie Torres (D-NY), a member of the House Financial Services Committee overseeing the SEC, pointed out the evolving position of Gensler, who has shifted from being a supporter to a critic of cryptocurrencies. Torres suggested that portraying crypto as a villain is a way for Gensler to present himself as a political hero. Additionally, Congressman French Hill (R-AR), who chairs the House subcommittee on digital assets, highlighted the need for a clear legislative structure in response to the activities of Coinbase, Binance, and the collapse of FTX.
Recently, a US Bankruptcy Court denied a request to transfer control of $7.3 billion worth of disputed assets belonging to FTX, a troubled cryptocurrency exchange. This decision dashed the hopes of Bahamian liquidators who sought to seize a portion of the assets through the Bahamian justice system. The hearing centered around determining the rightful ownership of FTX’s significant assets, which include a substantial amount of cryptocurrency and cash.
In addition, cryptocurrency custody company BitGo has reportedly entered into a preliminary agreement to acquire Prime Trust, a licensed cryptocurrency custody expert based in Nevada. While the acquisition is still pending regulatory approval, it holds the potential to enhance the industry significantly. The merged company would offer a comprehensive range of products, services, and expertise, contributing to a larger cryptocurrency ecosystem.
As for Bitcoin’s price prediction, if it breaks above the $27,400 level, it can reach the next target of $28,020 or possibly even higher. However, if Bitcoin experiences a breakdown below the $26,200 support level, it may find further support at $25,400.
After the news of the SEC targeting Binance and Coinbase, Ethereum faced downward pressure and is currently trading from $1860 to $1830. Technical indicators are showing a bearish sentiment. It is crucial to monitor the $180 level, as a breach of this support could expose Ethereum to the next support level at $1800. A violation of the psychological level of $1800 may lead to further selling towards $1775 or $1760.
Overall, these events indicate the importance of clear regulation and reliable custody services within the cryptocurrency industry. As new dynamics emerge due to developments like SEC lawsuits, exchange bankruptcies, and acquisitions, prices of digital assets like Bitcoin and Ethereum remain sensitive to these market changes.
Source: Cryptonews
