Bitcoin Price Prediction: BTC Dips 3% Amid Binance Lawsuit and Potential Rate Hike Concerns
Bitcoin, the world's leading cryptocurrency, is facing a dip of 3% as it trades at $29,171 on Tuesday. The failure to sustain higher price levels may have influenced aggressive bearish sentiments, leading to short positions, while short-term bulls have chosen to secure their profits.
Amidst the market fluctuations, two significant factors weighing on BTC's performance are the ongoing Binance lawsuit and concerns over a potential rate hike.
As these uncertainties loom, investors closely monitor the market dynamics to make informed decisions.
The drop in BTC's price is not definitively explained, but it coincides with a Wall Street Journal report that has sparked concerns among investors regarding Binance.
The report highlighted statements made by Binance CEO Changpeng "CZ" Zhao in 2019, which raised questions about potential "wash trading" activities by Binance affiliates during the launch of its US trading arm, leading to inflated trading volume suspicions.
Being the world's largest cryptocurrency exchange, Binance is already facing legal challenges, having been sued by the Securities and Exchange Commission (SEC) last month.
It is currently under investigation by the Department of Justice, which may lead to a consent decree or settlement.
The investigation focuses on potential violations related to anti-money laundering and sanctions evasion, with potential implications for Binance's future operations.
Moreover, investors closely observe the outcome of the Federal Reserve's two-day meeting for hints about possible interest rate hikes.
Historical rate increases have contributed to bitcoin's price decline, and market participants are cautious about the Fed's future decisions, given ongoing recession concerns.
As the Federal
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