Bitcoin drops to around $27,000 after being sued by Binance | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) briefly dipped below $27,000 after the Commodity Futures Trading Commission (CFTC) sued Binance and founder and CEO Changpong Zhao. Around 11:15 on the 28th Japan time, around $ 27,070.

Coinbase’s BTC/USD pair fell to $26,525, its lowest since March 17, according to TradingView.

Julius de Kempenaer, Senior Technical Analyst at StockCharts.com, said the Binance-US Commodity Futures Trading Commission (CFTC) lawsuit likely caused bitcoin prices to drop “extremely. ‘ said.

But he added, “We don’t yet know the impact” of the lawsuit, even if it indicated increased regulatory scrutiny. He said Bitcoin could fall to around $25,000.

“If that level continues, we are still in the process of breaking out of the long-term bottom,” but “if we break out of the heavy resistance range between $29,000 and $32,000, we have a much stronger uptrend.” It will open,” he said.

The news of the Binance lawsuit has caught traders who invest in rising prices off guard. About $39 million worth of bitcoin long positions have been liquidated, according to Coinglass.

Altcoins drop

The complaint alleges that Bitcoin, Ethereum (ETH), Litecoin (LTC), stablecoins Tether (USDT) and Binance USD (BUSD) are securities.

Ethereum is down 3.6% in 24 hours. Binance Coin (BNB) Drops More Than 5% Near $310. Litecoin (LTC) fell about 4.8%.

Riyad Carey, a research analyst at cryptocurrency data firm Kaiko, said regulatory uncertainty, particularly the allegations in the CFTC complaint, were “concerning” factors driving the market. rice field.

“Binance is currently the largest cryptocurrency exchange in the world and has a huge impact on the market,” Carey said. But given the importance of the news, he added, the drop was “not very severe.”

Some crypto-asset stocks also fell. Shares of Coinbase (COIN) and bitcoin miner Marathon Digital Holdings fell 8% and 6%, respectively.

Equity markets were mixed after the news that US regional bank First Citizens Bank would buy the bankrupt Silicon Valley Bank on the afternoon of the 27th. The S&P 500 and Dow Jones Industrial Average rose 0.4% and 0.8%, respectively. Meanwhile, the Nasdaq fell 0.1%.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Bitcoin Sinks Below $27K After CFTC Files Suit Against Binance