Bitcoin and Ethereum, the two main cryptocurrencies, have given their share price affected by major developments surrounding the U.S. Securities and Exchange Commission (SEC) lawsuit against Binancethe bankruptcy of the FTX exchange and the acquisition agreement involving BitGo.
This news undoubtedly brings new dynamics to the cryptocurrency market. In this articlewe are looking at the latest known information and we provide insight into how these events may shape the future of these digital assets.
Parliamentarian Criticism of SEC Lawsuits Impact Bitcoin Prices
THE cryptocurrency market had a turbulent week due to lawsuits filed against major exchanges Binance and Coinbase by US securities regulators. But of many parliamentarians have criticized the measures taken by the Securities and Exchange Commission (SEC) of the United States against these exchanges, describing them as “complete disregard for Congress”.
THE SEC Chairman Gary Gensler and the agency’s approach to regulating the cryptocurrency industry make the subject of intense scrutiny and harsh criticism. So the New York State Democratic Rep. Ritchie Torresa member of the House Financial Services Committee overseeing the SEC, pointed out the evolution of Gensler’s stance from cryptocurrency supporter to staunch opponent. Torres suggested that Gensler’s relentless criticism of cryptos is a way to cast himself as a political hero.
Congressman, French Hill, Republican of Arizonawho chairs the House Subcommittee on Digital Assets, said stressed the need for a clear and unambiguous legislative structure in response to the activities of Coinbase, Binance and the bankruptcy of FTX. Hill said that if the proposed bill had been put in place, the SEC might not have needed to take the action it did.
Indeed, last week, Hill and other parliamentarians presented a bill, aimed at establishing a comprehensive regulatory framework to foster innovation, close regulatory gaps and ensure consumer protection. Growing criticism from US lawmakers of recent SEC actionsand including its President Gary Gensler, have contributed to support the price of bitcoin.
U.S. Bankruptcy Court Rejects Request to Transfer $7.3 Billion in Assets from FTX Exchange
In a recent bankruptcy hearing held in the United States Bankruptcy Court for the District of Delaware, a Federal court rejects $7.3 billion control transfer request disputed assets owned by FTX, a struggling cryptocurrency exchange. This decision dashed the hopes of Bahamian liquidators who sought to seize part of the assets through Bahamian justice.
The hearing, presided over by Justice Dorsey, centered on the crucial issue of determine the rightful ownership of material assets of FTX, which include a substantial amount of cryptocurrency. While Bahamian liquidators have proposed that a Bahamian judge handle part of the bankruptcy case, FTX restructuring advisers, who took over the exchange following the arrest of its founder Sam Bankman-Fried for fraud, opposed this suggestion. THE Judge Dorsey has not officially announced his decision on the issue and he intends to make a formal decision later.
BitGo Signs Preliminary Agreement to Acquire Prime Trust, Expanding Cryptocurrency Custody Offerings
There bitgo cryptocurrency custodial company would have concluded a preliminary agreement to acquire Prime Trust, another Nevada-based licensed cryptocurrency custody expert. Although the acquisition is still pending regulatory approval, it has the potential to significantly improve the industry, according to Jor Law, interim CEO of Prime Trust. Law indeed pointed out that the merged company would offer a full range of productsservices and expertise, enabling them to revolutionize the future of cryptocurrency and contribute to a larger ecosystem.
Demand for digital asset custody continues to growin particular among institutional clients and high net worth individuals: companies like BitGo and Prime Trust are therefore essential to provide secure storage solutions.
The need for reliable child care has become increasingly important, leading to the development of regulations such as the rules proposed by the United States Securities and Exchange Commission (SEC) to solve the difficulties of custody of cryptocurrencies and ensure their protection.
Bitcoin Price Prediction
This Friday, Bitcoin is showing a choppy trading session at approximately $26,500 after getting support around the $26,200 level. On the four-hour chart, Bitcoin is currently testing the resistance level at $26,500 and could potentially target the next target at $27,400. If Bitcoin breaks above the $27,400 level, it may reach the next target of $28,020 or maybe even higher.
THE key technical indicatorssuch as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), indicate a buying tendency, supporting the likelihood of a pronounced upward move. And the presence of the 50-day exponential moving average further reinforces the potential for upward momentum keep on going.
However, if Bitcoin experiences a break below the $26,200 support level, it may find further support at $25,400. Despite this, the overall bullish outlook remains stronger. It is important to closely monitor the price action around the $26,200 level as it may present potential buying opportunities.
If this scenario of a prolonged upside unfolds and Bitcoin does not break above the $28,300 level, investors might be able to engage in short selling below this threshold.
Conversely, assuming Bitcoin successfully breaches the $28,300 level and secures a close above, investors could then consider buying, targeting an initial resistance level of $29,000with the next resistance likely located near $29,450.
Ethereum Price Prediction
The significant market decline after the SEC news targeting Binance and Coinbase also weakened Ethereum which has faces downward pressure. ETH is is currently trading between $1,830 and $1,860 with technical indicators that today show a bearish sentiment. The 50-day exponential moving average is also acting as resistance around the $1,854 level, indicating a higher likelihood of further downside.
It is crucial to then watch the $1,830 level, as a downward breach of this support could expose Ethereum to the next support level at $1,800. And, a move below that psychological level of $1,800 could lead to a steeper decline towards $1,775 or $1,760.
Top 10 Alternatives to Bitcoin and Ethereum to Watch
Cryptonews reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.
Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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