Bitcoin and Coinbase Both Struggling Hard
On July 26, bitcoin (BTC) dropped to $21,000 when it became public that a major cryptocurrency exchange in the United States, Coinbase, was the subject of an investigation.
The Bitcoin Price Has Reached an “Extremely Crucial” Level of $21,000
As news of new legal problems for Coinbase regarding securities trading, the Bitcoin to United States Dollar exchange rate quickly reverted to lower levels, as shown by Cointelegraph Markets Pro and TradingView.
According to the initial report by Bloomberg, the U.S. Securities and Exchange Commission was investigating whether or not the exchange had let users trade in securities that had not been registered.
The move, which came at the same time as parallel charges that a former CEO engaged in insider trading, gave the appearance of terrifying the market and was part of a larger conflict between the cryptocurrency business in the United States and its regulators over compliance.
Ironic the peak euphoric events of the Bull Market were Tesla buying #Bitcoin and Coinbase IPO'ing on the Stock Exchange
Now in the last week Tesla has sold and Coinbase is under investigation by the SEC
— Matthew Hyland (@MatthewHyland_) July 26, 2022
“Ironic the peak euphoric events of the Bull Market were Tesla buying #Bitcoin and Coinbase IPO’ing on the Stock Exchange. Now in the last week Tesla has sold and Coinbase is under investigation by the SEC.”
With that, Bitcoin went again, defending $21,000 as support for the day, and commentator Mark Cullen emphasized that the level had to hold for bulls to remain in charge of the market.
According to what he shared with his Twitter followers,
“The 21k level for BTC is super critical for the bulls to hold if they have any hope of this regaining a bullish posture”
“A 4hr close below there, and the ball is well and fully in the [bears’] court with regard to bitcoin,”
The 21k level for #BTC is super critical for the bulls to hold if they have any hope of this regaining a bullish posture. A 4hr close below there and the #bitcoin ball is well and truly in the 🐻 's court. pic.twitter.com/bQV0Ee0jcm
— AlphaBTC (@mark_cullen) July 26, 2022
Cryptocurrency Trader Tony was looking at a slightly lower level as a potential floor for the immediate term. However, he warned that a “dive deeper” was still a likely future consequence.
$20,700 is my target on this drop, following my chart yesterday. Looking for at least another drop to that level, but i do think we drop deeper ‼️ pic.twitter.com/WXYUCWZm6O
— Crypto Tony (@CryptoTony__) July 26, 2022
Coinbase, for its part, had been everything from inactive in the regulatory debate taking place in the United States. Last week, the company published a dedicated blog post on why the SEC should rethink its course of action.
“If the Commission starts an open process where all of us can provide input, we look forward to sharing our thoughts on how to answer the important questions our petition raises, and we would encourage others to do the same. If the Commission starts an open process where all of us can provide input, we look forward to sharing our thoughts on how to answer the important questions our petition raises.”
“IT IS CRITICAL THAT THIS IS AN OPEN AND TRANSPARENT PROCESS, WHERE THE PUBLIC HAS A CHANCE TO OFFER THEIR VIEWS. WE MAY NOT ALWAYS AGREE ON EVERY STEP OF THE WAY, BUT THIS MUST BE AN OPEN PROCESS. THE DECISION-MAKING PROCESS AT THIS LEVEL IS MUCH TOO IMPORTANT TO BE CARRIED OUT IN THE DARK.
Coinbase’s stock was trading lower before the market opened, falling another 3.7 percent after falling 5.3 percent the previous day.