Regulation
Cryptocurrency Market Rises Due to Regulatory Relief and Whale Activity
Get ready for takeoff! The cryptocurrency market showed a notable increase of 1% in the last 24 hours, reaching around $2.54 trillion during Thursday’s London session. This upward movement was driven by heightened on-chain activity, primarily involving whale traders, helping to push Bitcoin’s price back above $65,000, hovering around $65,834 at the time of reporting.
Change in the regulation of cryptocurrencies
In a significant turn of events, the cryptocurrency market has turned bullish following crucial regulatory decisions. The U.S. Securities and Exchange Commission (SEC) has ended its long tenure investigations into Ethereum, signaling a favorable outcome for the second-largest cryptocurrency by market capitalization. Additionally, the SEC’s move to seek a $102.6 million fine in the Ripple lawsuit suggests closure is approaching on another long-standing legal front.
India, emerging as a key hub for crypto and web3 innovation, has intensified regulatory scrutiny. Binancea major exchange, faced a $2.2 million fine for violating anti-money laundering rules, underscoring India’s commitment to providing clear guidelines despite previous uncertainty.
The whales continue to accumulate
According to Santiment, a leading on-chain data analytics firm, sentiment around Bitcoin has been characterized by prolonged negativity and fear over the past four weeks. However, amidst this cautious sentiment, large investors have been steadily accumulating Bitcoin in anticipation of an imminent market rebound.
Recent data reveals a significant purchase by a single whale, who acquired 6,070 Bitcoins worth approximately $395 million. In contrast, Bitcoin retail trading volumes have shown a decline in recent weeks, reflecting cautious retail sentiment.
Is the fix over?
From a technical perspective, analysts warn that Bitcoin’s price trajectory remains precarious until it consistently closes above the $67,000 mark on higher timeframe charts. Specifically, outflows from US-based spot Bitcoin ETFs continue to put selling pressure on the flagship cryptocurrency.
Prominent cryptocurrency analyst Ali Martinez has hinted at a potential bearish trend for Bitcoin, projecting a decline towards $54,930 based on the Market Value to Realized Value (MVRV) indicator.
Read also: Crypto-1, SEC-0! The Ethereum 2.0 investigation was halted after the Consensys lawsuit
Are you thinking of following the whales and buying Bitcoin? Do your research first and never invest more than you can afford to lose!