BTC fell to its lowest level since March 17 after the company sued the crypto exchange for alleged violations. The price of Binance coin (BNB) fell by 5%. Bitcoin (BTC) fell below $27,000 after the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder Changpeng Zhao over allegations that the exchange was deliberately giving crypto developers not registered in the United States, against federal law.
BTC/USD trading on the Coinbase exchange fell to $26,525, the lowest point since March 17, according to data from TradingView. The largest cryptocurrency by market capitalization was recently trading at $26,978, down 3.1% in the past 24 hours.
“As far as I can tell, the crypto community is putting this news on the ‘here we go again,'” Julius de Kempenaer, senior technical analyst at StockCharts.com, told CoinDesk. Kempenaer said that the Binance-CFTC case “probably” caused the price of BTC to drop. However, he added that “the impact of the case is not clear”, although it provides the latest example of the monitoring of the legal system, the system of the company will continue to watch. He said bitcoin could fall to its first stop near $25,000.
“As long as this level is held, the suspension and long-term planning is still in play,” he said. But he added that “the removal of the high resistance level between $29,000 and $32,000 will pave the way for a strong move higher.”
Monday’s Binance-CFTC report caught traders betting on conservative price gains. They withdrew about $39 million from long BTC positions, according to data from Coinglass. In a lawsuit against Binance filed in the US District Court in Illinois, the CFTC named several cryptos including BTC, ether (ETH), litecoin (LTC), tether (USDT), and Binance USD (BUSD). US Securities and Exchange Commission (SEC) Chairman Gary Gensler has already suggested that proof of stake tokens are securities. ETH, the second largest cryptocurrency, fell below $1,700 before rebounding to $1,703 recently, still down 3.6% from the same time on Sunday. BNB, the token of the blockchain network launched by Binance BNB Chain, is down more than 5% to around $310 from around $327 a day ago. Litecoin (LTC) changed almost 4.8%.