BTC returned to $40,000 as the regulators renew their interest in the crypto market so let’s read more in our latest Bitcoin news today.
The number one cryptocurrency breached a key price threshold even as the regulators renew their focus on the crypto industry and the volatile week for Bitcoin ended. BTC returned to $40,000 on Monday for the first time since June and it hit this key threshold two days later. The price of BTC hit $40K in the early hours of Wednesday before dropping again but then recovered the key level. What’s more to it, the leading crypto is enjoying a bullish movement despite the regulatory attention on the crypto space as of late. The biggest exchange in the busienss Binance has been adjusting its position on various fronts after the pressure from global regulators. Binance even cut its leverage trading from 125x to 20x and traders that use leverage to make traders are able to enhance their bids by huge amounts but the downsides can be as equally as multiplied which will lead to mass liquidations among the traders.
When they mis-quote you… another thread on CEOs.
There are no immediate plans to replace me as CEO.
I/we would very much like to hire a strong compliance background CEO to show our commitment to compliance as this is the top priority of the organization.
— CZ 🔶 Binance (@cz_binance) July 27, 2021
FTX led by CEO Sam Bankman Fried dropped the number of leverage users can tap and Binance’s CEO Changpeng Zhao also was quite vocal about finding a contingent CEO with strong compliance and regulatory experience. All of the moves seem to be in direct response to the regulators across the world that are looking to clean up the industry. During the hearing of the Senate Banking Committee, US Senator Elizabeth Warren warned that the crypto market grows and so do the risks to the financial stability and the economy.
There are concrete markets forces that are helping bitcoin reach $40,000 as they did in the past and most notably, a so-called Short squeeze. The Financial term became well-known amid the GameStop Saga after a group of Redditors discovered a huge amount of short positions on the Gamestop stock and rallied together when they bought it fast. On one side were bigger hedge funds that went short or looking to make more money if the stock dropped, and on the other side was a group of internet investors that wanted to go long expecting GameStop to go to the moon. As the buy orders piled up, the short positions started losing money, and investors in these positions had to start buying the stock to repay loans that they took to join this position. The move creates a bullish event and the same can happen in the crypto markets. Former banker and analyst Alex Kruger said that bitcoin’s move was a simple short squeeze with epic proportions but it remains to be seen how long will it hold this level.
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