The most prominent cryptocurrencies, Bitcoin and Ethereum, end the week on a bearish note, with both coins continuing to lose value. Bitcoin recently fell below $28,000 while Ethereum fell to $1,800.
Although bitcoin touched $28,500 earlier this week, the rally was short-lived as the price fell quickly. Similarly, Ethereum failed to reach $1,800 on Sunday morning, leaving investors worried.
However, the reason for the recent drop can be attributed to the news that Binance, a leading crypto exchange, is facing crypto regulations in the US and Dubai.
The Virtual Assets Regulatory Authority (VARA) in Dubai has requested Binance, which received an MVP license from the authority in September 2022, to provide more information about the company’s ownership structure, corporate governance and audit procedures.
In addition, the broad-based US dollar has gained traction as previously released US jobs data shows that the US economy is growing, raising the possibility that the US Federal Reserve will have to hike interest rates next month.
This has been confirmed by market participants who now believe that there is a 70% chance that interest rates will rise, which is likely to have a negative impact on bitcoin prices.
Binance is under regulatory scrutiny in Dubai and the US, potentially impacting bitcoin prices
As previously mentioned, Dubai’s Virtual Assets Regulatory Authority (VARA) has ordered leading cryptocurrency exchange Binance to provide more details on the company’s ownership structure, corporate governance and audit procedures.
This action is part of the UAE City’s attempt to address cryptocurrency challenges with strict laws and ensure compliance with the highest regulatory requirements. Binance management has stated that it has provided VARA with all material answers through its regulatory and fiduciary duties.
So, this growing legislation is restricting Binance, which is already under pressure from the US Commodity Futures Trading Commission. VARA’s investigation into Binance and other overseas crypto exchanges is likely to influence the current rise in bitcoin price as investors appear cautious due to increased regulatory scrutiny.
This could lead to lower demand for cryptocurrencies and ultimately affect their prices.
Analyst predicts Bitcoin to rally to $130,000 by year-end using Elliott Wave Theory
Bitcoin’s price could hit $130,000 by the end of this year, according to a well-known analyst using a technical analysis method known as Elliott Wave Theory. This theory suggests that when a coin is in an uptrend, it goes through five waves, with the first, third, and fifth waves indicating rising prices.
As this is a good sign, investors could buy more bitcoins in anticipation of rising values, which could affect the price.
Nuclear-powered bitcoin mining in the US sees impressive results
TeraWulf, a cryptocurrency mining company in the United States, has just opened the first 100% nuclear-powered bitcoin mining facility in Pennsylvania.
The Nautilus facility has already turned on over 9,200 miners, resulting in a 50 percent increase in the company’s average operational hash rate since February.
Meanwhile, the company also operates a hydroelectric and nuclear-powered mining facility in New York, which contributes to an average production rate of 7.5 BTC per day, or $208,973 per day at current Bitcoin prices.
This was seen as important news that would have a positive impact on bitcoin price. It shows that people are becoming more interested in and investing in mining operations, showing that people are gaining more confidence in the future value of cryptocurrencies.
bitcoin price
The ongoing battle between optimistic bulls and cautious bears continues as Bitcoin remains confined to a tight trading range between $27,600 and $28,900.
Technical analysis suggests that the BTC/USD pair is in a downtrend. However, it might face resistance near $28,250.
Bitcoin price chart – Source: Tradingview
If Bitcoin breaks this resistance level, its value could surge to $28,900 or even $29,250. Conversely, if the downtrend resumes, significant support is expected around the $26,500 and $25,500 levels.
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Top 15 Cryptocurrencies to Watch in 2023
To keep up to date with the latest ICO projects and altcoins, it is advisable to regularly consult the expert-curated list of the top 15 cryptocurrencies in 2023.
This way, you stay well-informed about emerging trends and opportunities in the crypto market.
Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.
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