Binance CFTC Lawsuit Enough To Affect Major Crypto Downtrend?

Crypto News: The Commodities Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market, but it remains to be seen if the move still has enough legs to affect a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to significant drop in Bitcoin price, it continues to hold resistance above the $26,600 level. Meanwhile, the crypto community is debating about the impact of CFTC action, which was in complete contrast to how the U. S. Securities and Exchange Commission (SEC) viewed major cryptocurrencies.

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

The Binance lawsuit came just under a week after the SEC issued a Wells Notice to Coinbase, in what is turning out to be a spree of enforcement actions against crypto businesses. The notice was about concerns surrounding the listed digital assets, their staking services, and other things.

Binance CFTC Lawsuit FUD Over?

Despite the FUD around Binance lawsuit, the Bitcoin price managed to hold above the strong support level of $26,600. Crypto trader Crypto Tony warned about this crucial level after the Binance news was out. Meanwhile, Alex Kruger, another trader, said CFTC’s enforcement actions traditionally did not have any major impact on the crypto market.

“CFTC actions historically have no bite. Binance news brought some welcome short term volatility but is unlikely to start a trend.”

Although the Bitcoin price dropped by 0.60% over the last 24 hours, 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?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.