The SEC complaint against Binance hit the market hard, so much so that it pushed Bitcoin to prices slightly above $25,000. However, in the last hours, they try to recover. But analysts warn that it won’t be for long.
The cryptocurrencies rebound slightly this Thursday June 8 and try to recover after the SEC onslaught on Binance. Bitcoin advances 1.3% in the last 24 hours and Ethereum at 0.8%. However, investors remain cautious.
In the rest of the market, the main altcoins rise up to 3% led by Binance (BNB), followed by Ripple (1.2%) and Tron (1.2%)
“We are far from out of the woods,” said Naeem Aslam, chief investment officer at Zaye Capital Markets. The recent lawsuits by the Securities and Exchange Commission (SEC) against Binance and Coinbase continue to be the main focus of attention of investors, who are seeing how crypto assets are resisting better than crypto exchanges in these times of market stress. BTC, ETH and the stablecoin Tether (USDT) were trading at large premiums on Binance.US, a sign that investors are abandoning the US subsidiary of the world’s largest exchange.
“Bitcoin is bigger than any other crypto asset, and one thing is certain: Currently, we mainly have bitcoin whales and professional institutions that are in the markets. Retail traders, who were in for short-term profits, have been pushed out long ago, and were largely responsible for excessive volatility in the markets,” Aslam noted.
What analysts expect about the price of Bitcoin
Therefore, this expert pointed out that bitcoin prices “likely” to “remain under pressure”while noting that “there is a chance that the price could break the important support at $25,000, but it is also possible that there will be quite a bit of buying at a reduced price at that level”.
For his part, Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, points out that the “impressive” price resistance in cryptocurrencies makes one thing clear: “For most cryptocurrency traders, an existential threat to cryptocurrency exchanges is not an existential threat to cryptocurrency”.
“The overall inflation and the increased yields they are a bigger headache for cryptocurrency valuations than cryptocurrency exchanges’ problems with the SEC,” adds this expert.
Source: Ambito
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