In the Asian market on Thursday (June 8), the short-term momentum of bitcoin maintained a volatile downward trend, and the price fell to $26,338. The news that the US court approved the freezing of Binance's US assets overnight came out overnight, but then changed its tune to "to be confirmed", and the official did not provide further updates. Binance released Strong Together's Declaration of Industry Solidarity, refuting the SEC allegations, emphasizing that it has not misappropriated customer assets and is debt-free.
CoinGraph broke the news on Wednesday evening that the court had formally authorized the freezing of assets of BAM Management and BAM Trading. Although it did not authorize the freezing of Binance US (Binance.US) assets, the court also ordered Binance US to return all fiat and cryptocurrencies held in the account to its customers within 10 days, which completely stifled the normal operation of the company.
However, looking for information from the US side, this news has not been confirmed, and it is still necessary for the US judicial authorities to make a further positive announcement.
Investors are most worried now that the lawsuit will spill over to Binance platforms (Binance.com) outside Binance US, with CEO Changpeng Zhao saying in a statement earlier: "Clarifying, if the court approves, the asset freeze will only affect Binance US." Binance is not affected and user assets are safe. ”
Binance US issued a statement saying that user assets are safe, the platform will continue to operate fully, deposits and withdrawals function normally, and the SEC's submission of temporary injunctions is groundless, more to give SEC staff an advantage in litigation, rather than really caring about the safety of customer assets.
The company stressed that despite submitting information to SEC staff to ensure the safety of customers' assets, SEC staff decided to file a false seizure motion, and Binance US was disappointed by the action and will do its best to defend itself in court.
In addition to calling on the crypto community not to create panic (FUD), Binance officials also issued a post on Wednesday night calling on the community to unite and get through the current predicament. The exchange, titled "We Are Different," refuted multiple allegations made by the SEC against Binance, saying it would continue to build for users.
"Our wallet addresses are transparent, we don't misappropriate customer assets, we don't borrow uncollateralized, we don't make large political contributions, we don't sponsor media on a large scale, our communities come from different races, ethnicities, and faiths, and we are united by a shared vision."
In Binance's official Chinese channel, Binance begins with #Strong Together, and at the end of the manifesto is more suspected of alluding to the bankrupt cryptocurrency exchange FTX, saying that Binance is different from their approach: "We will continue to build for our users, we will stand up for the industry, we are different from XXX, we are Binance." ”
Since being sued by the SEC, Binance has faced a serious loss of user assets in a short period of time, with a total of $2.2 billion in customer assets flowing out within nine hours of the announcement, and although it has now eased, it remains to be seen whether it can successfully survive this difficulty.
Bitcoin fell on the back of Binance, Coinbase lawsuits, and Ruslan Lienkha, head of markets at YouHodler, a Web3 crypto and fiat service provider, wrote that the company expects volatility to continue to rise "for days or even weeks" as a result of the SEC lawsuit.
But he added: "Overall, the market seems to be in better shape and better prepared for possible outcomes." There is no doubt that cryptocurrency market participants are doing a better job of managing risk than they did two or three years ago. ”
Here is CMTrade's daily Bitcoin technical analysis:
Bitcoin continues to hover around $26,330, with Bitcoin mining company Argo Blockchain producing 173 BTC in May. As of May 31, 2023, Argo held 50 BTC and sold about 206 BTC in May, and the company held 83 BTC at the end of April.
From the 4-hour chart, the short-term momentum maintains a volatile downward trend, and the short-term decline may continue. The market as a whole is in a downward trend of short positions. The MACD indicator is weakly finishing below the 0 axis and the RSI indicator is hovering weakly below the 50 balance line.
Resistance level: 26665 26868
Support levels: 26171 25980
Trading strategy: bearish below 26456 with target 26171 25980
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