Bitcoin price briefly dipped below $29,000 on Monday for the first time in more than a month. This happened after Binance CEO, suggested in a private conversation that the crypto exchange’s affiliates had conducted wash trading several years ago, and China’s policymakers warned of a tortuous economic recovery while falling short of announcing large-scale stimulus.
China’s economic despondency
China’s ruling Communist Party’s policymakers led by President Xi Jinping said the country’s economy is facing new difficulties and the economic recovery will be challenging.
China faces several issues ranging from weak consumer spending after an early boost following the reversal of COVID lockdown measures, deepening deflation in factory gate prices, and housing and real estate problems. As such, markets have been expecting a strong monetary or fiscal response from Beijing.
Bitcoin, often considered a pure play on fiat liquidity and the riskiest of the risk assets, likely fell on the back of China’s growth concerns and the absence of major stimulus hints.
Bitcoin Price Analysis
The Bitcoin price fell more than 2.5% to around $29,000 between 9:30 UTC and 10:00 UTC shortly after the Wall Street Journal published its report, and Bitcoin price dipped to as low as $28,872 later during the day, CoinDesk data show. Then, BTC recovered and changed hands at around $29,100.
Bitcoin price analysis show it is at a very critical phase, testing the significant under $30,000 mark.
Bitcoin price prediction
Bitcoin price prediction based on the lack of positive catalysts in the short term and usually muted summertime trading activity could result in a Bitcoin price decline, as per analysts.
Bitcoin price prediction, as per Alex Kuptsikevich, FxPro senior market analyst “If bearish pressure intensifies, the next significant support level would be $27,000, the lower boundary of the rising channel from the November lows and the 200-week moving average”.
“It is beating a slow retreat at the moment as the price continues to trend down from recent highs,” said Simon Peters, markets analyst at digital brokerage platform eToro. “Although market dynamic in summer months can tend toward volatility with lower trading flows, the recent period has been remarkably calm for top crypto assets in the market.”
Binance story
Regulatory uncertainty surrounding Binance, the largest crypto exchange, tends to weigh on crypto prices.
“Binance does not engage in or tolerate wash trading, which is a violation of our terms of use, nor has it ever done so. Binance has a dedicated Market Surveillance team that is responsible for reviewing surveillance related to potential abusive and/or manipulative behavior including wash trades and trade price manipulation. The Market Surveillance team utilizes surveillance models and a team of experienced surveillance professionals to detect and prevent market abuse,” Binance’s spokesperson said.
The WSJ’s report also said Binance’s representative dismissed the SEC’s charge as unfounded. As Binance is the world’s largest cryptocurrency exchange by trading volume, regulatory uncertainty surrounding Binance tends to weigh on crypto prices.
Crypto price update
The other crypto price update with major alternative cryptocurrencies are:
- Altcoins dropped through the day, with Ripple’s XRP and Solana’s SOL leading the fall.
- SOL plummeted 6.8% over the last 24 hours
- XRP declined 6.2%.
- Ether (ETH), the second largest crypto asset by market capitalization, fell 2.1% over the same period and traded at around $1,840.
- Popular dog-themed memecoin dogecoin (DOGE) defied the struggles of the broader cryptocurrency market, jumping as much as 5% before paring some of the gains.
- Worldcoin, the crypto project of Sam Altman, went live Monday with its mainnet launch. Its native token WLD gained some 38%.
