Bitcoin, the leading digital currency, has experienced a sharp decline, reaching its lowest point in 11 weeks. This drop comes as Binance, one of the world’s largest crypto exchanges, faces regulatory challenges.
The United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance on Monday, accusing the exchange and its affiliated companies of facilitating the trading of tokens that are considered securities.
The SEC’s report specifically mentions several tokens, including BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
The exchange is also accused of providing coin-earning programs such as BNB Vault and Simple Earn, as well as a staking investment plan. Furthermore, the SEC alleges that Binance deliberately evaded supervision by US authorities.
The regulatory crosshair targeting Binance has not only affected Bitcoin’s price but has also resulted in significant losses for several altcoins, as seen in both daily and weekly charts.
Following the announcement of the SEC lawsuit, Bitcoin’s value dropped from $26,800 to $25,400. Similarly, Binance Coin (BNB) experienced a decline from $305.17 to $272.89.
Other prominent cryptocurrencies mentioned in the lawsuit, such as Solana (SOL), fell from $22.04 to $19.42, Cardano (ADA) from $0.379 to $0.3483, and Polygon (MATIC) from $0.8933 to $0.8304.
However, the regulatory storm did not end there. Just a day after the SEC sued Binance, the commission filed a lawsuit against Coinbase, another leading crypto exchange, over allegations of unregistered activities. The impact of these lawsuits on the overall market remains to be seen.
Bitcoin Price Prediction
According to CoinMarketcap, Bitcoin (BTC) is currently being traded at $25,937.39, indicating a slight recovery compared to yesterday’s performance. However, it remains in the negative territory, reflecting a loss of approximately 3.14% over the past 24 hours and 6.61% on the weekly chart.
Based on Bitcoin price predictions, technical indicators suggest a bearish sentiment with an extreme fear reading of 11.59 on the Fear & Greed Index. On June 6, 2023, most technical analysis indicators signaled a bearish sentiment, resulting in a 10.43% decrease in Bitcoin’s value over the last 30 days.
However, there is a possibility of a slight recovery in the coming month. By the end of June, Bitcoin is expected to experience a 114.84% increase, reaching approximately $55,724.19.
Presently, all indicators point towards a bearish zone, and the fear & greed index remains at 11.59, indicating extreme fears. Bitcoin is currently trading below the 200-day simple moving average and the 50-day SMA, both signaling a sell.
The 200-day SMA is projected to drop, reaching $23,237.62 by December’s end, while the short-term 50-day SMA shows $27,744.56 by December 2023. Additionally, RSI is currently at RSIValue, suggesting a neutral position in the BTC market.