Kelvin Daminabo
Bitcoin’s price has plummeted below $60,000, currently trading at $56,900, following the verdict announcement for Binance Founder Changpeng Zhao. This sudden decline has triggered a wave of liquidations in futures contracts, reaching a staggering $380 million per day, according to Coinglass data.
The crypto market has been experiencing high volatility, with Bitcoin’s closing price on April 30 marking the lowest point since late February. This downward trend has broken through crucial support levels in March and April, as well as the psychologically significant round level. According to Alex Kuptsikevich, senior market analyst at FxPro, this indicates a clear bearish trend, and a swift recovery is unlikely.
The recent turmoil in the cryptocurrency market has highlighted Bitcoin’s status as a risk asset, notes Arthur Firstov, Chief Business Officer at Mercuryo. The sentencing of Changpeng Zhao to four months in prison has sent shockwaves through the market, leading to a significant pullback in cryptocurrency prices. Nearly the entire crypto market has entered the red zone, with Bitcoin bearing the brunt of the decline.
Despite his lawyers emphasizing his cooperation with investigators and US authorities during the proceedings, Zhao’s sentence has sparked concerns about the future of Binance and the broader crypto market. The defense team also pointed out that Zhao is no longer involved in managing Binance, which may have contributed to the market’s instability.
As the crypto market continues to grapple with the aftermath of the verdict, investors are exercising caution, leading to a surge in liquidations and a decline in prices. The current market sentiment is bearish, and a swift recovery for Bitcoin and the broader crypto market appears unlikely in the short term.