Bitcoin bounces on SEC news and FUD
The fear that Bitcoin would crash after the SEC’s charges against both Coinbase and Binance is apparently smaller than the fear of having to sell your Bitcoins at a good time. This seems to be how the market reacts to the news coming out of the United States. Investors are clearly not very frightened by the charges and are confident that it will all work out.
As has been reported several times in recent days, long-term investors in crypto do not want to sell their Bitcoin because of this portion of FUD (fear, uncertainty and doubt) that the global press (the news made the front pages of the BBC, the New York Times and Reuters) seems to want to direct towards the crypto market.
Why didn't the SEC sue FTX?— Wendy O (@CryptoWendyO) June 6, 2023
Oh that's right they allowed public servants to take *donations* and colluded with them to further oppress Americans https://t.co/EgKhB99e46
In particular, the fact that Coinbase recently applied for a license to operate from Bermuda was echoed in the US press.
Changpeng Zhao, CEO of Binance, also noted that no similar action was taken against FTX last year. His followers claimed that the fact that FTX, Sam Bankman-Fried’s now-bankrupt crypto platform, had made large political donations to both Republicans and Democrats was probably part of the reason.
The SEC’s charges against both Binance and Coinbase briefly sparked market fear, but by now, a look at the fear and greed index shows that Bitcoin is back to neutral.
Bitcoin Fear and Greed Index is 50 — Neutral— Bitcoin Fear and Greed Index (@BitcoinFear) June 8, 2023
Current price: $26,347 pic.twitter.com/uxH5aLZAyq
Large long-term holders (aka Whales) hold their Bitcoin and sell-side liquidity remains low. Especially with the halving of 2024 ahead and the summer months of 2023 (which are usually positive for crypto), the market is not ready for a new downturn.
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