By Mark Ackman
Even though there are continuous efforts to regulate the cryptocurrency market, the value of Bitcoin surged above $29,000 today. This marked a new all-time high for the current year that is 2023.
Bitcoin Tips Over $29,000
The value of Bitcoin briefly surpassed $29,000, reaching a new high for the current year. This happened in spite of the latest crackdowns on cryptocurrency companies by the US regulatory authorities.
In an attempt to regulate the crypto market, the US government is scrutinizing crypto-related activities, resulting in uncertainty surrounding the market.
As per reported data the value of Bitcoin surged to $29,132.82. This is close to the levels observed right before the downfall of the FTX cryptocurrency exchange last year in November.
The exchange crashed as a result of insufficient liquidity and improper management of funds which was followed by withdrawals from anxious investors.
Crypto Fear and Greed Index
Despite instability in the global banking industry, the Crypto Fear and Greed Index, regarding major cryptocurrencies has consistently risen over the past month.
The index quantifies the prevailing emotions and sentiments of the crypto market towards Bitcoin and other major tokens.
Several traders have suggested that the recent surge in prices could be attributed to merely buying strategy. According to such views, the big players might be buying back into the market as part of their own trading strategy.
Essentially, the price is not a result of any fundamental changes in the market. It may not be attributed to positive news, investor sentiment, or other strong market indicators.
Bitcoin Price Increase amidst Lawsuit against Binance
The irony is that despite various regulatory suppressions in recent times, the buyers seem unperturbed.
Even amidst a legal action against Binance by the United States Commodity Futures Trading Commission, the value of Bitcoin rose significantly.
The commission took legal action for breach of trading regulations by the crypto exchange. The unexpected recovery in Bitcoin’s value following the major news of the lawsuit has surprised many industry experts.
There are many speculations with respect to such a scenario. Some believe it’s because investors anticipate that Binance will only face minor penalties from the legal action.
Binance is currently the largest cryptocurrency exchange in terms of transaction volume which implies increased liquidity. Since it’s the largest crypto exchange there is a certain level of trust and credibility attached to it.
Can Bitcoin Overcome ‘Serious Ask Liquidity’ to Reach $30,000?
The price movements of Bitcoin have effectively nullified the losses incurred due to the news of Binance being under investigation by regulatory authorities.
Earlier, the general agreement was that BTC/USD pair would revisit lower levels of support. The 200-week moving average of roughly $25,500 was the primary focus.
Skew, on the other hand, recognized that for the short-term upward trend to persist, the buyers would need to generate significant buying power.
Skew is a data analytics firm providing real-time data and analytics for the crypto market. Another tweet stated that there was substantial ask liquidity between $28,000 and $30,000.
In order to surpass it, a significant market buying effort would be required.
Bitcoin Resilient To Negative News in Bullish Market
According to some reported data, Bitcoin has experienced a 71% increase in the first quarter of 2023 alone. Following four successive quarters of negative returns, this marks the first profitable quarter.
This positive trend suggests that the general sentiment toward Bitcoin has become more optimistic with investors working to establish a floor for its value.
When the market sentiment is optimistic, adverse news tends to cause only minor price corrections.
This is exactly what occurred after the United States Commodity Futures Trading Commission filed a legal complaint against Binance and its CEO.
Although this news pushed the markets slightly lower, it did not initiate a significant downward trend. In a bullish market, cryptocurrencies can experience price increases without a specific reason or trigger event.
This has been the case recently when Bitcoin and other large crypto tokens saw a significant upward movement.