The unrivaled digital gold, Bitcoin, experienced a dip, hovering under the $26,000 mark on Wednesday, following a tightly knotted series of trades over the past day and plunging to a weekly low of $25,500. A slight rally relieved its lingering distress, yet the digital asset still records a 9% slide over a week, leaving market enthusiasts anticipating the outcome from the eminent Jackson Hole central bankers’ meeting. The sense the community has is that any hint of dovishness from Jay Powell on Friday might ignite a recovery, amid a potential court verdict concerning the Grayscale case.
Sean Farrell, the visionary digital asset strategist at Fundstrat holds to the belief that given the absence of any industry-specific triggers and a liquidity ebb, the market is more likely brushing against a local trough than a ceiling.
Coincidentally, BNB, the cryptocurrency intricately linked with Binance, plunged to the deepest depth it’s seen in over a year. An unkind report outlining new risk exposure in the face of Russian sanctions triggered this fall, compounding the already stacking regulatory and legal burdens the crypto exchange is bearing. The token capitulated to a disheartening $204 on Tuesday afternoon, a bitter low unseen since June 2022’s crypto market meltdown. Despite clawing back some of its losses, the token is still trading at $214, down roughly 7% over the past week. The source of this latest setback traces back to Wall Street Journal reports stating Binance was giving Russian users leeway to ship money overseas despite the prevailing global sanctions.
Meanwhile, an announcement from Australia’s central bank reveals the country will maintain a no-decision stance on a central bank digital currency (CBDC) for several years. It cites several lingering issues that were revealed at the pilot project’s conclusion as the primary reason. “Given the many issues that are yet to be resolved, any decision on a CBDC in Australia is likely to be some years away,” the report stated. It further clarifies that the pilot was only aimed at scrutinizing how a CBDC could be leveraged by the industry to upgrade the payments system – not a full-scale appraisal on whether the CBDC introduction was feasible.
Furthermore, according to a recent chart, the BNB tied to the Binance digital assets exchange has seen its value in a downward spiral. With heightened regulatory oversight and investor qualms over a troubled BNB-backed loan, it’s now teetering on a crucial $200 support level. Should it tumble below, the next significant foundation directly stands at an unhealthy $130, a plunge that could be catastrophic for the coin.
Source: Coindesk
