Despite the probe against Binance by the CFTC, the price of Bitcoin (BTC) soared across the 29K mark before settling back to the $28,500 mark. The brief price surge marked a new high for 2023. The price of Bitcoin (BTC) reached almost $29,130 on March 30.
Keeping in mind the ongoing crackdown against Binance, the price increase of Bitcoin came to the surprise of many and drew attention from the market. A small percentage of these people believe the price increase resulted from speculation that the lawsuit would only result in a series of minor fines for the leading crypto exchange.
However, Bitcoin (BTC) slipped below the $29K mark and is still trading in the green. The largest cryptocurrency has witnessed an increase of approximately 1.02% in the previous 24 hours, pushing the trading price up to almost $28,631. At the same time, the total market cap of Bitcoin (BTC) is almost $552 billion with a market dominance of 46.60%.
However, the current situation supports the belief that the digital asset could be in the early stages of a bull market. Despite Bitcoin (BTC) displaying a considerable increase, altcoins have struggled to match its pace. The positive price movement in many altcoins, including ETH, is rather slow.
According to on-chain data, Bitcoin (BTC) whales are taking profits after continuous weeks of gains, and this might result in a decline in the upcoming days. These whales are booking profits and a high sell-off can trigger a price crash for the cryptocurrency.
Bitcoin (BTC) Fear and Greed Index Stays High
The Fear and Greed Index is responsible for the numerical representation of investor sentiment towards Bitcoin and other major cryptocurrencies. In the last month, the index has been inching toward Greed steadily despite multiple shakedowns, like the crash of the US banking sector.
A high number of traders have suggested that the recent price rebound is a result of traders buying back in. It can be stated that this move is increasingly related to their buying strategies instead of any solid market fundamentals.
Binance in Hot Waters
In other news, it was discovered that Binance kept a chunk of its employees and operations in China despite publicly stating that it had departed from Chinese soil in 2017. It was alleged that Binance stayed in the country regardless of the crypto ban, and the wages of the employees that were paid through a Chinese bank.
Similarly, the CFTC alleged that Binance purposely hid the locations of its executive offices and the identities of the ones that operate the trading platform. However, executives from Binance clarified that the exchange doesn’t operate in China, and neither does it have the technology to do so.
On an ending note, it is widely believed that Bitcoin (BTC) would continue to rally in the crypto space. Keeping the uncertainty in the banking sector in mind, it is said that the assets will witness a considerable increase in value within the upcoming few weeks. However, some analysts believe that Bitcoin (BTC) would go against the odds to retrace at lower levels.