Bitcoin price predictions have turned from bullish to bearish due to ongoing FUD, as the BTC/USD pair consolidates within a tight range of $16,000 to $17,250. The demise of FTX sent shockwaves through the cryptocurrency market, fueling fears that major players are in financial trouble.
Binance joins rescue fund – $2 billion
When major cryptocurrency exchange FTX went bankrupt, it sent shockwaves through the industry. The largest cryptocurrency exchange is at the forefront of recovering the industry following devastating disruptions. Binance launched a $1 billion industry recovery plan to help struggling cryptocurrency companies.
In an interview with Bloomberg on Nov. 24, crypto billionaire Changpeng Zhao said the fund would be structured “loosely,” public on the blockchain, and accept donations from other industry players.
Binance has already donated $1 billion in cryptocurrency and may donate another $2 billion if more is needed. The company claims to have received more than 150 requests for assistance from various failed businesses.
#Binance SAFU insurance fund ($1 billion USD equ) is roughly split between BTC, BUSD, and BNB. Just that BNB price rose faster than BTC since last rebalance.— CZ 🔶 Binance (@cz_binance) November 25, 2022
Yesterday, #Binance allocated ANOTHER $1 billion to the industry recover initiative.
Both publicly on the blockchain. https://t.co/Dpu9tNx5NQ
Additionally, CZ confirmed that the fund may be interested in buying the struggling cryptocurrency project purchased by the defunct FTX exchange.
Polygon Ventures, Animoca Brands, Jump Crypto, Aptos Labs, GSR Markets, Kronos and Brooker Group have already provided more than $50 million in funding for the initiative. This is yet another effort by Binance to rescue the cryptocurrency market. This news directly leads to an increase in the value of BTC/USD.
Belgium claims cryptocurrencies are not securities
Bitcoin, ether and other cryptocurrencies issued only in computer code are not considered securities, according to Belgium’s financial watchdog. The Belgian Financial Services and Markets Authority (FSMA) made its case in a report on 22 November; a draft report was made available for public review and comment in July 2022.
The FSMA said the clarification was necessary due to increased inquiries about the applicability of existing Belgian financial rules and regulations to digital assets. The asset classification criteria under FSMA do not depend on the underlying technology. It shows that the asset is safe whether it was created on the blockchain or not.
A more likely outcome is that digital assets issued by central authorities will be regulated as securities. Although cryptocurrencies are not considered securities, Belgian regulators have noted that companies may be subject to additional laws if they use them as a medium of exchange.
Compared with Belgium’s transparent supervision, the US Securities and Exchange Commission (SEC), which is currently competing with the US Commodity Futures Trading Commission (CFTC) for the right to supervise digital assets, is taking the approach of “enforcement supervision”.
Bitcoin price prediction
The current bitcoin price is $16,458 with a 24-hour trading volume of $23 billion. Bitcoin has remained largely unchanged over the past 24 hours. CoinMarketCap rose to first place with a real-time market capitalization of $316 billion. The total number of BTC coins is 21,000,000, and there are 19,216,643 BTC coins in circulation.
Bitcoin is currently trading sideways and has yet to break out of the tight $16,000-$16,750 range. The BTC/USD pair is currently declining to the 38.2% Fibonacci retracement level at $16,300. On the 4-hour time frame, it has crossed below the 50-day moving average, indicating a selling bias.
Likewise, the RSI and MACD are close to entering the sell zone, which suggests that BTC could drop below $16,300 and find support at $16,000. For those who need more help, the next tier starts at $15,600.
Conversely, if BTC breaks to the upside from $16,785, it could reach the $17,000 or $17,550 levels.