Bitcoin Price Prediction: BTC Plunges Amid Legal Action by US SEC Against Binance and Its Founder
In the wake of recent legal action by the US Securities and Exchange Commission (SEC) against Binance, the world's largest cryptocurrency exchange, and its founder, Bitcoin has witnessed a significant plunge.
This development has sent shockwaves throughout the crypto market, raising concerns and uncertainty among investors.
In this Bitcoin price prediction, we will analyze the impact of the SEC's lawsuit on Bitcoin's price movement and explore potential scenarios for its future trajectory.
The US Securities and Exchange Commission (SEC) has taken legal action against Binance, the largest cryptocurrency exchange globally, and its CEO Changpeng Zhao (CZ).
The SEC's lawsuit alleges that Binance failed to prevent US customers from using its platform, provided misleading information about its market surveillance controls, and operated an unregistered securities exchange.
The complaint further claims that Binance and CZ controlled customer assets, allowing them to mix and divert funds as they pleased.
The SEC accuses Binance of creating separate entities in the US as part of an attempt to evade securities laws.
Additionally, it alleges that a trading firm owned by CZ engaged in wash trading on the Binance.US platform, artificially inflating trading volumes.
Binance has stated its intention to vigorously defend against the SEC's claims, emphasizing that it is not a US-based exchange.
The news of the lawsuit had a significant impact on the cryptocurrency market, with Bitcoin and Binance's BNB token experiencing notable price drops.
The current price of Bitcoin is $26,725, with a trading volume exceeding $10 billion ($12.7 billion, to be precise) in the past 24 hours.
Within this timeframe, Bitcoin has experienced a decline of
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