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Bitcoin Recovers From $25K Support as Crypto Market Faces Regulatory Challenges

Bitcoin Recovers From $25K Support as Crypto Market Faces Regulatory Challenges

Bitcoin, the leading cryptocurrency by market capitalization, has bounced back from a critical support level of $25,000, gaining over $1,000 in less than an hour. The sudden price surge has sparked speculation that some influential market participants, known as whales, are buying the dip and accumulating more bitcoins.

According to data from CryptoQuant, a blockchain analytics firm, there was a significant increase in the number of bitcoins transferred from exchanges to unknown wallets on June 17, 2023. This could indicate that some large investors are moving their bitcoins to cold storage or other secure platforms, reducing the selling pressure on the market.

Meanwhile, the crypto market is facing some regulatory challenges in various jurisdictions. In France, authorities are reportedly investigating Binance, the world’s largest crypto exchange by trading volume, for alleged money laundering activities. According to Bloomberg, an official from the Paris public prosecutor’s office said that Binance is suspected of “acts of aggravated money laundering” and that the investigation is ongoing.

In the US, the Federal Deposit Insurance Corporation (FDIC) has sent a letter to OKCoin USA, a subsidiary of OKCoin, a crypto exchange based in Singapore, demanding that it correct false and misleading statements about its deposit insurance. The FDIC claimed that OKCoin USA has falsely advertised that its customers’ deposits are insured by the federal agency, which is not the case.

Additionally, the Texas State Securities Board has issued an emergency cease-and-desist order against Abra, a crypto lending platform, and its CEO Bill Barhydt. The regulator alleged that Abra has been insolvent since at least March 31, 2023, and that it has failed to disclose material information to its investors and borrowers.

Despite these regulatory headwinds, bitcoin’s dominance, or its share of the total crypto market capitalization, has increased to nearly 50%, a level not seen since July 2021. This suggests that bitcoin is outperforming most altcoins and retaining its status as the most resilient and secure cryptocurrency in the industry.

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