With the recent drop in Bitcoin prices, investors worry about a new downtrend. The popular cryptocurrency just experienced a down nearly 3%leading some to believe that the market is entering a bearish phase.
This latest development leaves many people perplexed and leads them to wondering about the future of Bitcoin and whether it can recover from this setback.
In this article, we’ll take a closer look at the recent Bitcoin price drop and provide some insight into what it could mean for the cryptocurrency market as a whole.
Binance suspends bitcoin withdrawals for the second time in 12 hours
Binance has once again temporarily stopped allowing BTC withdrawalsciting a large backlog of pending withdrawal requests.
Earlier, on May 7, Binance had to briefly suspend bitcoin withdrawals due to an alleged blockchain transaction overflow.
More than half an hour later, withdrawals were allowed again. However, this morning of May 8, Binance again reported that it temporarily closed BTC withdrawals. due to the large volume of pending transactions.
There are reports that indicate that there are approximately 400,000 transactions pending processing in the Bitcoin mempooland at the time of the second Binance withdrawal stop, the number of pending transactions in the mempool was around 485,000.
The mempool serves as an area where transactions are held at a “pending” status before being verified by each node on the blockchain.
These transactions were worth more than $5 billion.leading Binance to suspend BTC withdrawals for the second time in 12 hours.
On the other hand, cryptocurrency exchange OKX reported that despite high transaction fees, its Bitcoin deposit and withdrawal services remained operational.
However, the high volume of Bitcoin withdrawals added pressure on the price of the BTC/USD pair, causing it to fall below the $29,000 mark.
Prime Minister of Liechtenstein advocates using Bitcoin as payment method for government services
In a recent interview, the Liechtenstein Prime Minister Daniel Risch says he plans to introduce bitcoin payments to its citizens, which could be implemented soon.
He then described the plans of the European microstate ofaccept bitcoin payments for government services.
The national currency of Switzerland, the Swiss franc, will then be quickly exchanged for Bitcoins.
The Swiss cities of Zug and Lugano have already adopted a similar strategy for Bitcoin payments. Local authorities have taken steps to legalize bitcoin payments for specific taxes and costs associated with providing public services.
This news has helped limit some of Bitcoin’s losses, as it tends to legitimize the use of cryptocurrency.
Micro Strategy has been growing its BTC holdings for 11 quarters
The listed company, MicroStrategy, has benefited from Bitcoin’s rise in value over the past few monthsallowing him to report net income of $461 million in the first trimester.
Revenue from the software division was also higher than expected. The tax advantages associated with the company’s BTC holdings have contributed to this growth.
MicroStrategy’s stock price rose during the first months of the year.
On January 1, MSTR shares were valued at around $145. Right now they are worth around $318, which is a 120% increase.
Despite the volatile nature of the cryptocurrency and last year’s bear market, the economic intelligence firm has stuck to strengthening its BTC positions in recent years.
The quarterly report showed that the company had increased its holdings of BTC for the 11th consecutive quarter.
This positive news also helped the BTC/USD pair limit its losses on the day.
Memecoin’s Rise in Popularity Leads to Record Bitcoin Transaction Costs
THE Bitcoin (BTC) transaction fees reached a two-year high due to increased trading activity from memecoins like Pepe.
This week, total fees paid on the bitcoin network increased by around 400% compared to the end of Apriltotaling approximately $3.5 million.
Memecoins have grown in popularity in the cryptocurrency industry, and the BRC-20 token standard for Bitcoin has emerged as the latest development in this field.
This standard was used to create 8,500 distinct tokens.
The price of bitcoin
Bitcoin is currently experiencing a downtrend, trading at $28,300, down almost 3% in 24 hours.
This Monday, a new downtrend therefore pushed Bitcoin below the $28,500 support leveland technical indicators like RSI and MACD signal a continued bearish bias.
BTC failed to break above the 50-day exponential moving average, leading it to quickly head towards the $28,000 support level. If it falls below, it could then go down to $27,700.
Despite the oversold RSI, the broken trendline at $28,350 suggests that the bearish momentum will likely continue in the coming days.
Must therefore consider a sell position below $28,500 with a goal of $27,750. If Bitcoin rises above $28,500, it could aim for $29,000 or $29,750, but the trend is down, however: and the only question remains to gauge its magnitude.
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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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