Bitcoin and other cryptocurrencies rose Friday, settling near key levels as the digital asset space reels from a U.S. regulatory crackdown on the two major cryptocurrency exchanges, Binance the major strong cryptocurrency exchange on the planet and Coinbase the cryptocurrency firm which manages one of the main platforms for buying and selling bitcoins and other digital currencies.

Bitcoin’s price has risen less than 1% in the past 24 hours to $26 600, sitting in the middle of a trading range between $26 000 and $27 000 that has mostly dominated since the larger cryptocurrency failed to hold the April peak above $30 000. While Bitcoin fell into the $25,000 zone this week when the Securities and Exchange Commission sued Binance and Coinbase, digital assets have shaken off this threat amid a lack of sellers after a year-long bear market.

Bitcoin may have shown strength by quickly recovering from the USD 25,500 support level on June 6, but that doesn’t mean breaking above USD 27,500 is going to be an easy task.

Investors still expect stricter regulatory scrutiny following the FTX bankruptcy in November 2022, including recent lawsuits against Coinbase and Binance.

In the past six months, U.S. Securities and Exchange Commission (SEC) has taken a total of eight actions related to cryptocurrencies. Some analysts suggest that the SEC is attempting to redeem itself for failing to police the FTX by taking action against the two major exchanges.

Analysts’ Views 

Alex Kuptsikevich, an analyst at broker FxPro, said that “Bitcoin trades near $26 500, in the middle of the previous day’s trading range and just above the psychologically important 200-week moving average”; he added, “A break below this level could trigger a deeper drop to $24,500 (previous high) or even $22,200 (50-week moving average).”

Next week looms on the macroeconomic front, with Bitcoin likely to react to a sideways move in the Dow Jones Industrial Average and S&P 500 to U.S. inflation data due on Tuesday, and the Federal Reserve’s latest interest rate decision on Wednesday.

Meanwhile, pressures continue to mount on crypto exchanges charged by the SEC for, among other things, offering unregistered securities in the US.

Mark Palmer an analyst from Berenberg cut his price target on Coinbase shares Thursday while maintaining a Hold rating, though he rated the stock “non-investable” in the middle of significant regulatory overlap. Ratings agency Moody’s on Thursday changed its outlook on Coinbase’s debt, in unique, corporate family rating and senior unsecured secured notes.

 Beyond Bitcoin, Ether – the second largest cryptocurrency by market capitalization – gained less than 1% to around $1,850. Smaller cryptocurrencies or altcoins were more mixed, with Cardano crumbling at 4% but Polygon (MATIC) currently ranked among the top 10 cryptocurrencies based on market capitalization and has been in the top 10 for a long period of time, appearing at 2% higher.

On the other hand, memecoins were buoyant, with both Dogecoin based on the depicts a Shiba Inu dog that has as a sole prerogative being a fun alternative to Bitcoin and Shiba Inu or SHIB, a token bringing the power of a decentralized, community-led currency to millions across the globe since its inception in late 2020, were up less than 1%.

By Marina Meza

Current US Securities and Exchange Commission (SEC) Secretary Gary Gensler applied for a job at Binance in 2019.

The SEC drama against crypto trading does not seem to be heading toward a calm situation. Recently, the defendants chose to let the cat out of the bag and recall that Gensler applied for a job at Binance in 2019.

According to the company’s lawyers, the then Massachusetts Institute of Technology (MIT) professor approached the crypto firm. However, there is still no precision as to who approached whom to seek services.

A recent work by the WSJ points out that it was just the opposite. Either way, the relationship between Gensler and Binance CEO Changpeng Zhao appears to be on a remarkable trajectory. The latter could be the explanation for the viciousness of the current SEC lawsuit against the cryptocurrency trading platform.

Both people (Gensler and CZ) met repeatedly to talk about the future of the company in the United States. In other words, Gensler did not consider the crypto firm to represent a problem, as he now does at the helm of the agency.

Gensler and Binance, A Toxic Relationship

Whether Gensler applied for a job at Binance, or the opposite, seems unimportant at this point. What matters is that the current secretary of the SEC had a relationship with the exchange of previous data. If things ended badly, it is possible that the agency’s current viciousness against the platform has overtones of revenge.

Although the latter is an assumption, it cannot be ruled out. In any case, the crypto company’s lawyers say that in 2019 Gensler asked to be part of the project as an “informal advisor.”

So close is the relationship between the two, say the lawyers that Gensler was scheduled to testify before the US House Committee on Financial Services in 2019. Before appearing at the hearing, he sent Zhao a copy of his testimony seeking approval from the businessman.

Similarly, CZ was invited to attend a course on cryptocurrencies presented by Gensler at MIT. In the SEC’s lawsuit against the exchange and against CZ, the agency describes the executive, who resides in Dubai, as a “foreign national” with a tendency to “geographical evasiveness.” Meanwhile, he company dismisses the SEC director as someone who feels “comfortable with the role of informal adviser.”

Given the relationship both people have had, the lawyers requested that there be a recusal of any action related to the company.

The Other Side of the Story

There is an opposing narrative according to which Gensler did not apply for a job with Binance, but that it would have been the company that approached the then MIT professor to pave the way to the US market.

It is worth mentioning that in 2018, an internal Binance chat says that they should approach the professor since, in the 2020 elections, if the Democrats win, he would return to the field of regulators.

The same outlet cites a source close to the SEC, which, if honest, would show that Gensler did not apply for a position at Binance.

By Audy Castaneda

Binance is the world’s leading exchange and many people use it to trade and track the price of Bitcoin.

Bitcoin is by far the most popular and powerful cryptocurrency available today. From its decentralized nature to the limited security of supply through cryptographic technology, Bitcoin has disrupted the typical financial landscape. Furthermore, it has captured the imagination of investors and enthusiasts alike.

Now, what makes Bitcoin such a special and unique cryptocurrency among hundreds of others? Next, let’s explore the answer to this question.

Decentralization and Peer-to-peer Transaction

Unlike typical currencies, which are issued and regulated by central banks, Bitcoin runs on a decentralized network that runs on a peer-to-peer protocol. It means that all transactions on the Bitcoin network are between users and there is no need for intermediaries such as banks or payments.

Limited and Deflationary Supply

The total supply is around 21 million, which means that only 21 million Bitcoins will exist. This is in stark contrast to typical currencies that may be printed or even issued by central banks. Bitcoin’s limited supply has several implications.

First, it makes Bitcoin a deflationary currency since the supply is fixed and cannot be inflated by monetary policies, including quantitative easing.

The limited supply will also create scarcity, which will increase the price of bitcoins. It has led to speculation and investment in Bitcoin as a potential asset class.

Security and Cryptographic Technology

Bitcoin’s security is another important element that sets it apart from typical currencies. The Bitcoin network uses the latest cryptographic techniques to secure transactions and prevent any type of fraud.

Transactions on Bitcoin networks are verified through challenging mathematical algorithms, which require huge computational power to solve. The process, which is generally known as mining, is where the math puzzles must be solved. The first to solve will validate the transaction and add it to the user’s Blockchain.

Privacy and Pseudonym

Bitcoin transactions are basically pseudonymous. Thus, there is a certain level of privacy to all Bitcoin users, since the real-world identity is not tied to your transactions next time; however, it is important to know that Bitcoin transactions are not completely anonymous, as anyone can view the transaction history and track the flow of funds from one address to another.

 Bitcoin users can take steps to improve their privacy. For example, they may use different Bitcoin addresses for different transactions to make it challenging to link Transactions to a single user.

Global Accessibility and Transactions without Borders

Bitcoin is basically a global currency that is not geographically limited. Transactions can be made between users from various countries without the need for intermediaries.

 This feature makes Bitcoin transactions fast and cost-effective, compared to typical cross-border transactions, which can be time-consuming and expensive due to the fees and exchange rates involved.

The global accessibility of Bitcoins also makes it one of the best options for people who live in countries with restrictive financial systems or unstable currencies and allows them to have more control over their finances.

All in all, Bitcoin is a revolutionary digital currency that significantly differs from typical currencies and the financial system. It is decentralized and the most prominent way to participate in the Bitcoin ecosystem is through trading and mining.

By Audy Castaneda