Will The CFTC Action Against Binance Be Enough To Spark Major Crypto Downtrend?


Crypto News: The Commodities Futures Trading Commission (CFTC) recently filed suit against crypto exchange Binance, shaking up the market. But whether the move has the legs to cause a major downtrend in cryptocurrency prices is yet to be seen. After the news of the lawsuit hit, there was a notable dip in the Bitcoin price, yet it still holds strong above the $26,600 mark. Meanwhile, the crypto world is debating the effect of the CFTC action, which stands in stark contrast to the U. S. Securities and Exchange Commission’s (SEC) stance on major cryptos.

Also Read: XRP Lawyer: After CFTC, SEC Could Sue Binance Over Securities Offerings

This came shortly after the SEC sent out a Wells Notice to Coinbase, the beginning of a series of enforcement measures against crypto businesses. The notice focused on the listed digital assets, their staking services, and a few other things.

Will Binance Lawsuit Cause Crypto Downtrend?

Despite the Fear, Uncertainty, and Doubt (FUD) surrounding the Binance lawsuit, Bitcoin has managed to remain above the key support level of $26,600. Crypto trader Cryptony Tony noted this important level following the news about Binance. On the other hand, trader Alex Kruger said that CFTC enforcement actions typically don’t have a major impact on the crypto market.

“CFTC actions usually don’t make much of a difference. The Binance news created some welcome short-term volatility, but it’s unlikely to form a trend.”

Bitcoin dipped 0.60% in the last 24 hours, while the global crypto market cap increased by 0.32% in the same period.

Also Read: Ethereum’s Next Big Upgrade “Shapella” Coming This April; ETH Price Poised To Rally?

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