After experiencing a sharp decline of up to $25.4k on Tuesday following the Securities and Exchange Commission’s (SEC) charges against Binance and Coinbase Global, the price of Bitcoin has regained nearly 3 percent, reaching around $26.4k on Wednesday.
Officials from Binance and Coinbase have strongly criticized the top officials of the SEC for attempting to regulate the crypto market through enforcement. In a House Committee hearing on Tuesday, Coinbase’s Chief Legal Officer stated that the exchange will continue to operate as usual, disregarding the recent events.
What Really Transpired With Binance? We’ve covered it in detail: Binance Faces SEC Lawsuit: $700M Withdrawals and Metaverse Tokens Plummet!
What about Coinbase? We never miss a beat. Check it out: SEC Files Charges Against Coinbase for Operating Unregistered Securities, Seeks Major Penalties
Positive Sentiments Prevail
“Despite today’s complaint we will continue to operate our business as usual,” Grewal noted.
As a result, confidence in the future of the crypto market is much higher compared to yesterday’s shakeout.
Bitcoin: Price Action Analysis & Market Outlook
With more high-impact news expected to unfold, Bitcoin’s volatility is anticipated to remain high in the coming days, further enhancing the speculative nature of the market. A renowned crypto trader on Twitter, @MikyBullCrypto, predicts that Bitcoin’s price is on its way to $35k in the following weeks.
Additionally, the analyst highlighted that Bitcoin’s price demonstrated a quick formation of a bullish engulfing outlook just one day after the SEC’s legal action against Binance and Coinbase. The charges alleged that the majority of the listed digital assets are unregistered securities.
Bitcoin’s liquidity has remained relatively stable, staying within previous levels but below the average. Notably, only 11k Bitcoins have been withdrawn from Binance in the past 24 hours, while Coinbase Pro recorded an increase of approximately 1,900 coins.
In general, there is a possibility of further decline in the Bitcoin price in the coming days. However, a rebound from the current levels cannot be ruled out, driven by short squeezes and vice versa.