Bitcoin’s price is standing firm this week, which has been the case in the last few as well. However, this week it’s a bit different. The price has managed to float around $27,000-$28,000, which is impressive considering the global bank crisis and what’s on the horizon. The SEC just launched a large-scale offensive against leading US crypto exchange Coinbase which could put its future in jeopardy and deal a serious blow to cryptocurrencies.
The SEC has previously warned Coinbase not to let investors trade for unregistered coins. Which is all of them – over 400 in number, that haven’t been registered in the same way as stocks or bonds. That’s what the Securities Exchange Commission truly wants – to register cryptos as centralized assets. Its chairman Gary Gensler is bent on delivering that kind of blow to DeFi, and even if the suit could take years to develop, it could spell a lot of problems for Bitcoin’s price.
Instant Correction
Bitcoin’s price fell over 3% after Binance and its CEO Changpeng Zao were sued by the US Commodity Futures Trading Commission on March 27. Further tension arose when a US Federal Judge decided to postpone the proposed sale of Voyager Digital to Binance on the same day. To make things worse, geopolitical issues also impacted Bitcoin’s price once again as Russian president Vladimir Putin announced his intention to station tactical nuclear weapons in Belarus.
And, while none of these news was great for the crypto market, Bitcoin managed to persevered. The 3%+ drop was corrected in just a day, so Bitcoin rose back to the $28K level it held before. Such an instant correction is always a good sign. To make things even better, Bitcoin futures show no impact from the upcoming Binance case or the impending legal action against Coinbase.
Clear Skies Ahead
None of crypto’s derivative indicators were affected by the remote misses effect concerning Binance, Coinbase, and the SEC. Comapred to the past year or so, Bitcoin is stronger than ever. It’s a case of ‘What doesn’t kill you makes you stronger’, as it makes its way through new levels that were a dream just months before.
The crypto market is in solid shape as Bitcoin options traders are optimistic. Protective options are trading at a slight discount, which shows how unimportant the Binance news is. Same goes for the upcoming Coinbase case. There’s no huge market structure change right now, and that’s a good thing.
Until whales and arbitrage desks face a price correction higher than 3.5%, it’s all good. Right now, Bitcoin is flying just above the $28,000 mark, although there are no expectations of testing the $30,000 point soon. But, it’s all OK. Considering how hellish the last 12 months have been, we’re good enough as it is.
It’s always great to see Bitcoin holding its ground and staring in the face of adversity. Geo-political and legal troubles surely cause it pain, but right now, it’s just a scratch, and we’re glad it is.