Bitcoin fell to $28,890 at the end of Monday and this Tuesday it is testing a slight recovery of 0.8% in the last 24 hours to $29,278.5.
Bitcoin, the largest cryptocurrency in the world, fell below key levels and hit a one-month low after a media report outlined allegations of laundering operations against major exchange Binance. Sentiment was also on edge ahead of the Federal Reserve’s interest rate decision this week, prompting some flows into the dollar and out of risk assets as markets expected a hike from the central bank.
Bitcoin fell to $28,890 at the end of Monday and this Tuesday it is testing a slight recovery of 0.8% in the last 24 hours to $29,278.5. The token now appears to have slipped below key support levels, and could sink as far as $25,000 to $26,000 before finding new support, according to IG analysts.
He Wall Street Journal reported on Monday that the CEO of Binance, Changpeng ZhaoHe said in a memo that the exchange may have engaged in wash trading, which is a method of artificially inflating trading volumes on an exchange, during the debut of his entity Binance.US.
The report comes just a month after the US Securities and Exchange Commission (SEC) will file a lawsuit against Binance and Zhao for violating securities laws, as well as engaging in laundering operations. The demand had further dampened sentiment towards cryptocurrencies, at a time when the sector was already reeling from waning interest from retailers following a series of high-profile bankruptcies in 2022.
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Focus on rates
Still, sentiment towards the stock market cryptocurrencies deteriorated following the WSJ report, and other major tokens such as ethereum and Ripple they also posted heavy losses this week.
The markets in general they were also very risk averse before the publication of Fed meeting this week, in which the central bank is expected to raise interest rates by 25 basis points on Wednesday.
However, although the rate hike seems to be discounted by the marketstraders were nervous at any sign of further increases.
Source: Ambito
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