Top Stories
- Bitcoin (BTC) Price Decline: Bitcoin (BTC) dropped below $58,000 during the European morning on Wednesday, marking its lowest level since the end of February. BTC has experienced a decline of around 6% in the last 24 hours, falling below the $60,000 support level late on Tuesday. The broader crypto market, as measured by the CoinDesk 20 Index (CD20), has also lost more than 5%. This decline in cryptocurrencies is attributed to risk-off sentiment in the broader financial markets, driven by concerns about slower growth and persistent inflation in the U.S., which have reduced expectations of an interest-rate cut by the Federal Reserve. The Federal Open Market Committee is scheduled to announce its latest rate decision later today.
- Binance Founder Sentenced to Prison: Changpeng “CZ” Zhao, the founder of Binance, was sentenced to four months in federal prison on Tuesday after pleading guilty to charges of enabling money laundering at the crypto exchange. Despite prosecutors seeking a three-year sentence, Zhao received a relatively lenient punishment, partly due to the positive image portrayed by his defense lawyers, highlighting him as a philanthropist, family man, and first-time lawbreaker. U.S. Judge Richard Jones noted the significant volume of supportive letters from friends and family for Zhao, which he described as unprecedented.
- Accusations Against SEC Chair Gary Gensler: SEC Chair Gary Gensler was accused of misleading Congress by Rep. Patrick McHenry, the chairman of the House Financial Services Committee. McHenry stated that Gensler’s agency was aware of its classification of Ethereum’s ether as a security before Gensler attended a hearing and declined to answer that question. McHenry criticized Gensler’s refusal to address questions regarding the SEC’s stance on ether, suggesting it was an intentional attempt to misrepresent the commission’s position. The classification of ETH is a significant issue in U.S. oversight of digital assets, as it could have implications for the regulatory treatment of other tokens if ETH is considered a security.
Chart Analysis: The chart indicates that BTC’s price is currently below the average ETF purchase level, suggesting that more than half of spot ETF positions are underwater. This situation raises concerns about the risk of liquidation for these positions. The break below $60,000 opens up a potential route to the $50,000-$52,000 range, according to analysis from Standard Chartered.
