BTC has bounced back to $40,000 as regulators renew their interest in the crypto market, so read more in our latest Bitcoin news today.
The number one cryptocurrency breached a key price threshold even as innovation regulators focused on the crypto industry and the volatile week for Bitcoin is over. BTC bounced back to $40,000 on Monday for the first time since June, and it hit this critical level two days later. The price of BTC hit $40K in the early hours of Wednesday before falling back but later recovering to the key level. Furthermore, the leading cryptocurrency is enjoying a bullish movement despite the attention of regulators to the crypto space in recent times. The largest exchange in the business Binance has been adjusting its position on various fronts following pressure from global regulators. Binance even cut its leveraged trading from 125x to 20x and traders use leverage to make it possible for traders to increase their bids in bulk but the downside could be equivalent with multiplier, this will lead to mass liquidation among traders.
FTX led by CEO Sam Bankman Fried has reduced the amount of leverage users can mine, and Binance CEO Changpeng Zhao has also been pretty strong about finding a potential executive. Strong regulatory and compliance experience. All of these moves appear to be in direct response to regulators around the world seeking to clean up the industry. During a Senate Banking Committee hearing, U.S. Senator Elizabeth Warren warned that the growing cryptocurrency market entails risks to financial stability and the economy.
There are specific market forces that are helping bitcoin hit $40,000 as they have done in the past and most notably the so-called Short squeeze. The term Finance became famous during the GameStop Saga after a group of Redditors discovered a large number of short positions on Gamestop stock and regrouped as they bought quickly. On one side are larger hedge funds that have sold short or are looking to make more money if stocks fall, and on the other are a group of internet investors who have long wanted GameStop to go to the moon. As buy orders pile up, short positions begin to lose money, and investors in these positions have to start buying shares to pay off the loans they took out to enter the position. This move creates a bullish event and the same can happen in the crypto market. Former banker and analyst Alex Kruger said that bitcoin's move was a simple short squeeze of epic proportions but it remains to be seen how long it will hold this level.
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