Crypto Winter: Bitcoin Market Braces For Impact Amid Legal Turmoil 


The Bitcoin (BTC) market is currently facing a precarious situation that could have far-reaching implications for the entire cryptocurrency market. With Bitcoin trading at around $25.9k on Wednesday, key technical indicators on the weekly time frame suggest the possibility of further losses in the coming weeks. Furthermore, ongoing legal battles in the United States involving the SEC, Binance, and Coinbase Global are expected to exacerbate sell pressure, according to experts.

Also Read Crypto Vs SEC: What Is SEC’s Strategy Against Coinbase & Binance

Analyst Warns of Crypto Liquidations

Renowned market analyst Jason Pizzino has cautioned crypto traders to prepare for extreme liquidations if Bitcoin prices fall below the lows witnessed after the FTX incident in November. Should this scenario unfold, Bitcoin could potentially become stuck in an extended accumulation phase before a bullish trend emerges.

However, Pizzino believes that the likelihood of such a scenario materializing is relatively low. The analyst argues that more significant negative events, surpassing even the recent banking crisis or the collapse of FTX, would need to occur to revisit previous lows. Pizzino suggests that a global recession could potentially drive Bitcoin prices lower, followed by a recovery akin to the post-Black Thursday event.

A Note For Investors

For crypto traders, it is crucial to closely monitor macroeconomic updates that have a known impact on Bitcoin and altcoin prices. Among the top factors to consider are today’s Federal Funds Rate, FOMC Statement, and FOMC Economic Projections. These announcements have the potential to shape the direction of the cryptocurrency market in the near term.

Source: https://coinpedia.org/bitcoin/crypto-winter-bitcoin-market-braces-for-impact-amid-legal-turmoil/

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