Bitcoin (BTC) saw its price plummet after the United States Security and Exchange Commission (SEC) filed charges against Binance, its US-based entity, and its CEO, Changpeng Zhao (CZ), for violating security laws.
The accusation of Binance mishandling assets or funds of customers under the U.S banking regulations was published initially by Reuters, but with SEC taking legal action has had much negative effect on the price of Bitcoin (BTC) and other crypto assets as the price of BTC dropped from a high of $27,200 to a low of $25,300 as price bounced with much strength to hold above the key support area of $25,500.
With 13 allegations leveled against CZ and Binance, the CEO of Binance has come out to say he and his company are unaware of such allegations as news outlets spread FUD (Fear, uncertainty, and doubt) in the heart of many crypto traders and investors as the exchange experiences much withdrawal of assets.
The price of Bitcoin and other crypto assets has had a tough time in the present crypto winter as more FUD has affected the prices of assets. How will BTC react to this news that could change many things in the crypto market?
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Bitcoin (BTC) Price Update For Today
Bitcoin has struggled to show much price action in recent months as the price remains in its range of price movement within the region of $27,300 to $25,500 for the past few weeks.
The news on Binance and more possible allegations on Coinbase have seen the price of many assets struggling to hold above key support as BTC price dropped to a low of $25,300 as price bounced off that region, trading at $26,400 as of writing this article.
Bitcoin’s price has formed a downtrend channel as it continues in its range movement, suggesting a possible price breakout to the upside could be on the horizon.
The price of BTC breaking high above $28,500 could see a price rally to a region of $32,000 to $35,000. Bitcoin’s price needs to reclaim the region of $27,500 to $28,000 for the price to feel secure.