Bitcoin, the leading cryptocurrency, has experienced a rebound in its price, climbing back up to $27,000 after facing a significant drop caused by the SEC’s lawsuit against Binance.
The lawsuit has created uncertainty in the cryptocurrency market, impacting various digital assets.
However, Bitcoin has regained momentum and attracted buyers, leading to its upward movement.
In this Bitcoin price prediction, we will delve into the factors influencing Bitcoin’s price recovery and explore the potential future outlook for the cryptocurrency.
Challenges to US Dollar Dominance: Chinese Yuan, Euro, and Digital Currencies Pose Threat, Says TD Economist
In a report released last week, Vikram Rai, a senior economist at financial services company TD, examined the global trend of de-dollarization and highlighted currencies that could potentially challenge the dominance of the US dollar.
Notably, he mentioned central bank digital currencies (CBDCs), the euro, and the Chinese yuan as significant contenders.
Rai explained that many countries actively seek alternatives to reduce their reliance on the US dollar for international trade and cross-border banking transactions.
He emphasized that there are also “other incremental efforts to chip away at the dollar’s status,” referring to the planned shared BRICS currency that is expected to be discussed at the upcoming leaders’ summit of the economic group.
However, he expressed skepticism about the likelihood of a full-fledged currency union between such diverse economies, but noted that the announcement signals a commitment to conduct more of their trade and finance without relying on the US dollar.
Rai also highlighted the potential threat to the dominance of the US dollar posed by the rise of digital currencies, particularly those issued by central banks.
He suggested that if alternative digital currencies become widely used, they could weaken the dollar’s position as a means of payment.
Furthermore, Rai added that digital platforms like cryptocurrencies and central bank digital currencies could substitute traditional currencies in the future.
He envisioned the potential emergence of regionally-dominant currencies and a multipolar international regime within the next decade or two, with the dollar sharing its current role with the euro, a more open yuan, future central bank digital currencies, and other yet-to-be-seen options.
SEC Seeks Court Approval to Freeze Binance US Assets over Safety Concerns
The United States Securities and Exchange Commission (SEC) has taken decisive action by filing an emergency motion on Tuesday.
The motion seeks an immediate freeze on the assets controlled by BAM Management US Holdings and BAM Trading Services; the primary entities operate Binance US, a subsidiary of the renowned cryptocurrency exchange Binance in the United States.
The SEC urgently requests the court to issue a temporary restraining order.
Furthermore, the order explicitly prohibits Binance from engaging in any actions resulting in the deletion, alteration, or concealment of essential documents.
Another court ruling from the SEC emphasizes the requirement for BAM Management or Changpeng Zhao (CZ), the CEO of Binance, to provide compelling justifications for delaying the issuance of a preliminary injunction.
The SEC’s complaint against San Francisco-based exchange Coinbase precedes the news from Tuesday.
Similarly, the SEC has accused Binance of offering unregistered securities and allowing Americans to use its international platform.
The SEC asserts that the court has jurisdiction over this matter, the authority to compel the defendants to appear, and that the case should be handled in the district.
Following this news, investors became anxious. However, Zhao assured that the impact was limited to Binance US and did not affect Binance.com or other funds.
This clarification relieved the market, and Bitcoin prices regained positive momentum.
Bitcoin Price Prediction
On the technical front, Bitcoin is currently trading around the $26,900 level, rebounding from the $25,400 level.
At the moment, Bitcoin has faced resistance around the $27,350 level, and the formation of a bearish engulfing candle at this level suggests that selling pressure may be increasing, potentially giving sellers dominance in the market.
Looking at other technical indicators and moving averages, there is some divergence.
Both indicators hold bullish territory, suggesting that buying pressure may still dominate.
However, for Bitcoin to maintain its upward momentum, it will need to break through the $27,350 level.
Therefore, it is important to monitor the price action around the $27,350 level, as it is likely to act as a pivot point for traders today.
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Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.