Bitcoin’s price fell by more than 3% on Wednesday morning, dropping below $30,000. The sell-off was not linked to any immediate fundamental reason, but the unexpectedly high UK March inflation figure of over 10% may have influenced market sentiment. Additionally, liquidations may have played a role in the decline. According to Laurent Kssis, a crypto trading adviser at CEC Capital, there were nearly $100 million in liquidations on Binance. Many investors are buying at under $29,200, which presents an opportunity for those who anticipated the drop to get back in at lower levels.
The US Securities and Exchange Commission (SEC) Chairman, Gary Gensler, refused to confirm whether ether is a security during a five-hour hearing before the House Financial Services Committee on Tuesday. Gensler was also questioned about whether his agency was pushing too hard on proposed rules and providing too little time for public feedback. Additionally, he was asked about how the SEC was approaching crypto companies that want to operate in the US. Gensler fended off the questions.
According to Bloomberg, venture-capital firm Tribe Capital is considering leading a $250 million fundraising round to restart FTX’s operations. Tribe’s portfolio includes FTX, which collapsed in November. A source told Bloomberg that Tribe Capital co-founder Arjun Sethi met with FTX’s official committee of unsecured creditors in January to go over an informal proposal. The committee is working with the debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors. However, there is no set timeline for a reboot or sale at this time.
The chart of the day shows the number of bitcoin held by wallets associated with miners since February. The miner balance declined by about 800 BTC last week, indicating that those responsible for minting coins are beginning to run down their coin stash again. However, the miner selling seen so far accounts for less than 1% of bitcoin’s average daily trading volume of over $20 billion, suggesting a negligible bearish impact on the cryptocurrency’s price.
In summary, Bitcoin’s price has fallen by more than 3% to below $30,000, but the sell-off was not linked to any immediate fundamental reason. The unexpectedly high UK March inflation figure and liquidations may have influenced market sentiment. The US SEC Chairman, Gary Gensler, refused to confirm whether ether is a security during a five-hour hearing before the House Financial Services Committee. Additionally, venture-capital firm Tribe Capital is considering leading a $250 million fundraising round to restart FTX’s operations. Finally, the miner balance declined by about 800 BTC last week, indicating that those responsible for minting coins are beginning to run down their coin stash again.
