Bitcoin Pinned Below $35,000 as Market Stays Placid

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Created by TradeOr

3rd Party Analysis 28 Jun 2021

Key Takeaways

  • Digital currencies trade flat to kick off the week
  • Bitcoin recovers from weekend lows, after the UK orders Binance to cease UK activities

Bitcoin Pinned Below $35,000

The price of Bitcoin is slightly positive on Monday relative to last week’s closing level. Indeed, the asset ended Friday’s action down by about 10% to $31,000. Throughout the weekend, the price of the flagship cryptocurrency dropped. However, Bitcoin later recovered to reach a Monday intraday high of $34,900.

Bitcoin is now trading a little lower, at $34,400 as market participants prepare to start their trading activities in a quiet market environment. While cryptocurrency traders are still not able to bring the market higher on the back of increased regulatory pressures that threaten to undermine the recovery.

The digital currency market’s latest sell-off has resulted in a period of flat trading after billions of dollars were wiped off. This caused new traders to experience the thrill of both an epic rally and a sharp decline. According to analysts, these two characteristics seem inherently tied to a crypto market operating in a widely unregulated structure.

The UK Orders Binance to Cease Activities

In a latest effort to crack down on crypto assets trading, the UK Financial Conduct Authority, the country’s leading financial regulator, ordered crypto exchange Binance to cease UK activities. Therefore, alongside Japan, the UK took aim at the unlicensed operations of Binance. Accordingly, authorities have said the crypto exchange wasn’t permitted to conduct its business as it did not meet the required standards.

While the UK’s FCA move does not ban customers from using Binance, a spokesperson for the exchange said it has affected their relationships with UK customers. Similarly, Japan has issued a statement on June 25, saying that Binance is not registered to do business in the country.

The crypto market slid immediately after the news and Bitcoin reached a weekend low $30,100. On Sunday, however, the digital currency climbed about 8% as it pared the losses from the past two days.

As the market draws to a close of the first half of 2021, Bitcoin’s price remains positive by about 17%. Over the past three months, Bitcoin is negative by more than 40%. Month-to-date, the price of the largest crypto token is down 6.3%.

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