Two of the leading cryptocurrencies, Bitcoin and Ethereum, have been in the spotlight recently due to significant developments surrounding U.S. Securities and Exchange Commission (SEC) lawsuits, the bankruptcy of FTX exchange, and an acquisition deal involving BitGo.
These updates bring new impetus to the crypto market, affecting Bitcoin and Ethereum price predictions.
In this update, we delve into the latest information and provide insights into how these events are shaping the future of these digital assets.
Regulatory Action, Lawmaker Criticism Impact Bitcoin Price Amid SEC Lawsuit
Cryptocurrency markets have had a tumultuous week as U.S. securities authorities filed lawsuits against major exchanges Binance and Coinbase.
Lawmakers criticized the U.S. Securities and Exchange Commission’s (SEC) enforcement action against cryptocurrency exchanges, calling it “a total show of contempt for Congress.”
SEC Chairman Gary Gensler and the agency’s approach to regulating the cryptocurrency industry have come under intense scrutiny.
Rep. Ritchie Torres (D-NY), a member of the House Financial Services Committee that oversees the SEC, noted Gensler’s changing stance, as he has transitioned from a supporter of cryptocurrencies to a critic of them.
Torres suggested that Gensler's portrayal of cryptocurrencies as villains is a way to present himself as a political hero.
Additionally, Congressman French Hill (R-AR), who chairs the House Digital Assets Subcommittee, emphasized the need for a clear and unambiguous legislative structure to address the activities of Coinbase, Binance, and the collapse of FTX.
Hill said the SEC may not have needed to take the action it did if the proposed bill had been in place.
Last week, Hill and other lawmakers introduced a legislative discussion draft that would seek a comprehensive regulatory framework to promote innovation, fill regulatory gaps and ensure consumer protection.
Bitcoin prices have been supported by growing criticism of the SEC’s recent actions from U.S. lawmakers, including Chairman Gary Gensler.
U.S. Bankruptcy Court rejects request to transfer $7.3 billion in assets from troubled cryptocurrency exchange FTX
During a recent bankruptcy hearing in the U.S. Bankruptcy Court in Delaware, a federal court rejected a request to hand over control of disputed assets worth $7.3 billion belonging to troubled cryptocurrency exchange FTX.
The decision dashes the hopes of Bahamian liquidators who were seeking to seize some of the assets through the Bahamian judicial system.
The hearing, presided over by Judge Dorsey, centered on the critical issue of determining the legal ownership of FTX’s significant assets, including large amounts of cryptocurrency and cash.
While the Bahamian liquidator proposed having a Bahamian judge handle part of the bankruptcy case, FTX's restructuring advisers, who took charge of the exchange after its founder Sam Bankman-Fried was arrested for fraud, opposed the suggestion.
Judge Dorsey has yet to formally announce his decision on the matter, intending to provide a formal ruling when the case resumes on June 9.
BitGo Signs Preliminary Agreement to Acquire Prime Trust, Expanding Cryptocurrency Custody Offerings
Cryptocurrency custody company BitGo has reportedly reached a preliminary agreement to acquire Prime Trust, another licensed cryptocurrency custody specialist based in Nevada.
Prime Trust interim chief executive Jor Law said while the acquisition was still awaiting regulatory approval, it had the potential to significantly enhance the industry.
Law emphasized that the combined company will offer a comprehensive range of products, services and expertise, allowing them to revolutionize the future of cryptocurrency and contribute to the larger ecosystem.
As demand for digital asset custody continues to grow, especially among institutional clients and high-net-worth individuals, companies like BitGo and Prime Trust play a vital role in providing secure storage solutions.
The need for reliable custody services has become increasingly important, which has led to the development of regulations, such as the rules proposed by the U.S. Securities and Exchange Commission (SEC) to address custody difficulties and ensure the protection of cryptocurrencies.
Bitcoin Price Prediction
Bitcoin traded choppy around 26,500 on Friday after finding support near $26,200.
On the four-hour chart, Bitcoin is currently testing resistance at $26,500 and may target the next target at $27,400, aided by a negative U.S. jobless claims report.
If Bitcoin breaks above the $27,400 level, it can reach its next target of $28,020 and possibly higher.
Key technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) point to a buying trend, supporting the possibility of continued gains.
The presence of the 50-day exponential moving average further enhances the potential for continued upward momentum.
However, if Bitcoin breaks below the $26,200 support, it may find further support at $25,400.
Nonetheless, the overall bullish outlook remains strong. It is important to keep a close eye on price action near $26,200 as it could provide a potential buying opportunity.
If this happens and Bitcoin fails to move above the $28,300 level, investors may engage in short selling below $28,300.
The initial target for this move could be a drop to $27,500, which could be followed by a further drop to the next support level at $27,000.
Suppose, instead, that Bitcoin manages to break above the $28,300 level and close above it. In this case, investors can consider going long, targeting initial resistance at $29,000, with the next resistance level likely to be located near $29,450.
Ethereum price prediction
The market experienced a sharp decline following the news that the SEC was targeting Binance and Coinbase.
As a result, Ethereum is also facing downward pressure and is currently trading between $1,860 and $1,830. Technical indicators suggest bearish sentiment.
The 50-day exponential moving average is acting as resistance near $1,854, indicating a higher likelihood of further downside.
Additionally, both the RSI and MACD indicators are in bearish territory, reinforcing widespread selling pressure.
Monitoring the $180 level is crucial, as a break above this support could expose Ethereum to the next support level at $1,800.
A break above the psychological $1,800 level could lead to further selloffs towards $1,775 or $1,760.
