“The Reasons Behind the Decrease in Bitcoin (BTC) Value”
Bitcoin Price Fluctuates as Binance Issues Negatively Affect Market Sentiment
Recent negative developments in the crypto market have caused disappointment among investors as Bitcoin (BTC) price fluctuates. BTC has been trading within a narrow range for some time, but it started the week in the red with its transaction fees reaching their highest levels ever. In addition, BTC price is on the decline as the mempool is almost 98 percent full. Over 450,000 transactions are now stuck/pending on the Bitcoin blockchain due to batches spamming the network. Investors are concerned that this major problem could reflect on BTC.
One of the main factors negatively affecting Bitcoin price is the world’s largest cryptocurrency exchange, Binance, which has stopped BTC withdrawals repeatedly. This has led to BTC experiencing a pullback to the level of $27,617, causing a 7.4 percent loss. Meanwhile, Binance Coin (BNB) also fell 2.4% to $314, accompanying BTC’s 24-hour losses.
Investors are now focused on the levels at which they will invest in the middle of this long downtrend that Bitcoin has entered. Michael van de Poppe, CEO of trading firm Eight, has highlighted the $27,400 and $26,800 levels in BTC as important support levels. He also pointed out that the difference in weekend opening and closing prices created a gap in the CME Group Bitcoin futures markets.
Despite Binance CEO Changpeng Zhao describing the market declines as FUD, his statements have been confirmed by the crypto community. Investors are advised to do their research and make their own decisions when investing or trading as every investment carries risk.
Disclaimer: The views and opinions expressed in this article are those of the author alone and do not reflect the views of Cointelegraph.com.
