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 Fear and Greed Index is 59. Greed
Current price: $27,138 pic.twitter.com/wsKlug0vqz— Bitcoin Fear and Greed Index (@BitcoinFear) March 28, 2023
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.
Today the CFTC charged Binance and its founder, Changpeng Zhao, with willful evasion of federal law and operating an illegal digital asset derivatives exchange. learn more: https://t.co/DdczFgvW6A
— CFTC (@CFTC) March 27, 2023
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 Long Short Ratio spiked as Open Interested dropped on the #binance #CFTC announcement.
This suggests that shorts were being closed out on the move. pic.twitter.com/1Va0nBeGEU
— Decentrader (@decentrader) March 28, 2023
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.
Big turnaround in sentiment with $160m inflows in to crypto assets as concerns for tradfi grow amongst investors. https://t.co/gHsmQw9jqH
— James Butterfill (@jbutterfill) March 27, 2023
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.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. Shaft or 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
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.
Local top confirmed. #Bitcoin resilience is being tested.#BTC looking at $24-$25k if liquidity does not pick up.
👉 https://t.co/S1mULrIkYU pic.twitter.com/n5gR8TiLza— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) March 27, 2023
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