The fresh weekly trade began with the rounds of the SEC restricting Paxos from issuing new BUSD coins. The platform is believed to face a lawsuit from the SEC in connection with issuing BUSD labeled as ‘unregistered securities’ with a total capitalization of $16B, with 90% of it concentrated on Binance.
Amid the chaos, the Bitcoin price slides close to $21,500 and continues to hover below $21,700, failing to test the crucial resistance at $21,800. The selling pressure has mounted and the bearish trend may prevail with the BTC price for some more time.
What can we expect with the BTC price in the coming days?
Well, it all depends on the fresh CPI rates which are to be released a few hours from now. If the CPI rates are announced lower than 6.2% then a decent gain may be recorded within the markets. In such a case, the price trend may follow the blue line indicated in the above chart. The price may consolidate for a while and quickly rise high to reach beyond $25,000 by the end of the month.
However, the upswing may continue in the coming days which could uplift the price above $40,000. Conversely, the bearish case could emerge when the CPI rates are announced as higher than the expected 6.2%. This may create a depression in the crypto prices which could drop back to the liquidity zone below $20,000 and consolidate for some time there.
In either case, the Bitcoin (BTC) price is believed to rise high and reach the desired target of $50,000 later this year.
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As the Bitcoin market continues to be volatile, we have seen the introduction of new derivatives products, namely BUSD or Binance USD, which many people believed might offer stability to the market. However, FUD (fear, uncertainty, and doubt) surrounding BUSD’s stability may drag the Bitcoin lower this week.
BUSD is a new cryptocurrency-backed stablecoin launched by Binance, the world’s largest crypto exchange. It was seen as an attempt by Binance to add a layer of liquidity and stability to the crypto market, however, the launch of BUSD was met with skepticism by some in the crypto community who questioned the legitimacy of its reserves.
The concern amongst those that questioning BUSD’s reserves is that the coins could be fractionalized, meaning that instead of holding one backed coin, BUSD may only have partial coverage with regard to the amount of coins it holds. This worry is further compounded by the fact that BUSD is not FDIC or SEC insured.
Given the FUD surrounding BUSD’s stability, investors may opt to sell their holdings of Bitcoin in order to minimize their losses should BUSD’s reserves be fractionalized. This could create a domino effect of Bitcoin selling that would drive the price of Bitcoin lower this week.
Investors should take the FUD surrounding BUSD seriously as it could have a significant impact on the Bitcoin price this week. Those who remain invested in Bitcoin should look for other potential sources of volatility, such as reports from governments around the globe and upcoming halving events, so that they can be prepared and make calculated decisions with their investments.
Overall, investors should keep an eye on the FUD surrounding BUSD this week, as it could have a significant impact on Bitcoin’s price. Utilizing reliable market data and analysis, investors will be better positioned to anticipate the potential for volatility and adjust their portfolios accordingly.