Bitcoin Drops 5% Below $27,000 After Binance News, Is It The Local Top?

Bitcoin (BTC) failed to recapture $28,000 yesterday and then news came out about the lawsuit against Binance. Bitcoin immediately fell 5% to $26,500. Since then, the price has been trying to hold above 27,000, but is currently dropping below to $26,975 on Binance and $24,930 on Bitvavo.

This puts the bitcoin price down 3.2% today. The trading volume increased by 25% in the past 24 hours. The total market capitalization is $521 billion and the dominance is 46.1%. The Fear & Greed Index comes out at 59 (Greed).

Bitcoin drops after Binance indictment

This morning it was already reported on Crypto Insiders that Binance has been sued by the Commodity Futures Trading Commission (CFTC). Not only the world’s largest crypto exchange, but also CEO Changpeng Zhao (CZ) and COO Samuel Lim are being charged by the regulator. More Binance news will follow on Crypto Insiders later today.

The Binance news caused the significant price drop and is of course bearish news for the entire crypto market. Prices may hold up more strongly than expected for the time being. Decentrader reports that open interest on futures fell shortly after the CFTC announcement.

Bitcoin funds are growing again

Bitcoin funds finally saw another net inflow last week. This follows after 6 weeks of outflows and, according to Coin Shares, may be related to the problems at the banks. The inflow reached $160 million last week, but whether this will continue this week with the Binance news remains to be seen.

Saylor is buying bitcoin again

Nevertheless, MicroStrategy also decides to repay its Silvergate loan and buy more bitcoin again. Michael Saylor with his company buys 6,455 BTC for approximately $150 million and now owns 138,955 BTC in total.

Local top for bitcoin?

We wrote earlier that the bitcoin market currently sees very little liquidity. According to the founders of analytics firm Glassnode, Bitcoin may have hit a local high and could fall back to $24,000-$25,000 if liquidity doesn’t improve soon.

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Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.

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