The Bitcoin price prediction continues to remain unchanged, despite the fact that the world’s largest digital asset by market capitalization has been in the news lately due to the recent surge in its trading volume. With a trading volume of over $40 billion in the past few days, the market is buzzing with activity, and many investors are wondering what this could mean for the future of Bitcoin.
In this update, we will explore the impact of this surge in trading volume on the price of Bitcoin and analyze the role played by whales in the current market scenario.
Crypto Fundamental Outlook: Binance, Kraken, and Coinbase
Despite concerns among some crypto traders about potential regulatory shocks in the near future, a group of high-profile investors remains unfazed. Following the temporary suspension of US Dollar deposits and withdrawals by Binance, a crisis scenario could arise if no US banks step up to offer support.
While there may be more clarity on the situation next week, the recent $30 million settlement between Kraken and the US Securities and Exchange Commission (SEC) resulted in a sudden drop in market prices.
Following the settlement, Coinbase CEO Brian Armstrong issued a warning that the SEC could potentially ban crypto staking altogether. Against this backdrop, recent remarks from SEC chair Gary Gensler suggest that crypto companies will be required to provide full disclosures, further supporting the possibility of such actions being taken in the future.
In fact, Gensler went so far as to state that compliance with US laws regarding full and faithful disclosures may be the only way for crypto companies to remain viable.
Analysis of the Role Played by Whales
Whales are large investors who hold a significant amount of a particular asset and have the ability to significantly impact the market with their actions. In the cryptocurrency market, the activities of whales can have a significant impact on the price of digital assets, including Bitcoin.
Recent data and statistics suggest that the current surge in trading volume may be due to the involvement of whales in the market. The analysis of their activities provides valuable insights into the market trend and can help investors make informed decisions.
Bitcoin whales, individuals holding over $1 million worth of BTC, took advantage of a price dip by purchasing more at current prices. On-chain data reveals that this buying spree was particularly high after the FTX collapse in November 2022.
These whales’ behavior suggests that the negative sentiments surrounding Kraken’s suspension of crypto staking services would be short-lived, and that they see an opportunity to purchase significant amounts of BTC below the $22,000 threshold.
IMF: El Salvador’s “Limited” Bitcoin Use Mitigates Predicted Risks
The IMF has cautioned El Salvador to exercise care in extending the government’s involvement with Bitcoin, as the digital currency’s speculative nature has caused its prices to decrease.
Despite the country’s “limited” use of Bitcoin, the IMF emphasized the risks posed to El Salvador’s fiscal sustainability, consumer protection, and financial stability.
The IMF highlighted the need for increased transparency in both Bitcoin transactions and the state-owned Chivo wallet’s financial condition. As Bitcoin’s use as legal currency in El Salvador could grow, the IMF advised the country to reconsider plans to issue tokenized bonds, which pose legal and financial risks.
IMF Advises El Salvador to Avoid Issuing Tokenized Bonds
The IMF recommended that El Salvador refrain from issuing tokenized bonds due to their legal and financial risks. The statement emphasized the speculative nature of crypto markets and the country’s fiscal vulnerability, highlighting the need for caution in expanding government exposure to Bitcoin.
The IMF called for greater transparency in the financial condition of the Chivo wallet, as well as El Salvador’s Bitcoin transactions.
PayPal Halts Stablecoin Project After Reporting $600M in Crypto Holdings
According to the report, PayPal held $291M of Bitcoin and $250M of Ethereum, with an additional $63M in other digital assets such as Bitcoin Cash and Litecoin (no breakdown provided). The company noted that a third-party custodial service provider held these assets in its name for its customers’ benefit.
PayPal identified the uncertain regulatory environment as a risk to its business, citing the unclear legal status of some cryptocurrencies and the potential need for additional licensing due to the evolving regulatory landscape. The company expressed concern that its current and future customer cryptocurrency offerings could subject it to additional regulatory obligations.
The lack of regulatory clarity in the US has been a growing concern for crypto companies, as seen in the recent enforcement action against Kraken by the SEC, resulting in a $30M fine for the exchange.
Bitcoin Price
BTC price is $21,810 with a 24h trading volume of $15.3B. It’s up 0.45% in the last 24h with a #1 rank, $420.7B market cap, 19.3M circulating, and a 21M max supply of BTC coins.
Bitcoin broke a key support zone at $21,875 on Saturday, increasing the possibility of a bearish trend in BTC. A bullish breakthrough of this level could lead to the next resistance levels of $22,300 or $22,850.
However, if it fails to break below the $21,750 level, it may continue to downtrend to the $21,200 level. If BTC’s price breaks below this level, it may plummet to $20,600, which is its immediate support.
