Categories: Crypto Review

The lawsuit against Binance highlights cryptocurrency infrastructure risks

Market picture

Bitcoin is down 2.6% in the last 24 hours to $27K. The crypto market’s total capitalisation fell 1.9% to 1.14 trillion. The decline was triggered by the CFTC’s surprise lawsuit against Binance. According to the agency, the platform violated derivatives trading rules by operating without proper registration. Its issued coin, BNB, lost more than 5% overnight.

According to CoinShares, investments in cryptocurrencies rose last week for the first time after six weeks of decline, amounting to $160 million – the highest in the previous eight months. Investments in Bitcoin increased by $128m, while Ethereum decreased by $5m due to investor concerns about the traditional financial sector (TradFi), suggest Coinshares.

As with FTX, it is difficult to question the viability of Bitcoin or Ethereum. However, investors should ask themselves again: Are my funds safe? If banks are a risk, crypto exchanges are an even more significant risk. But is cash and crypto so risky in cold wallets?

News background

MicroStrategy has bought 6,455 BTC worth $150 million since mid-February at an average price of $23,238, said company founder Michael Saylor. In total, MicroStrategy holds 138,955 BTC worth $4.14 billion.

At their next meeting in May, the leaders of the Group of Seven (G7) countries will discuss tighter regulation of digital assets worldwide.

US venture capitalist Tim Draper has urged to prepare for the collapse of new banks if the government continues to print money and raise rates. In his opinion, it is worth having investments in at least two cryptocurrencies and two accounts at different banks.

Crypto-enthusiast DonAlt, who accurately predicted the “bottom of BTC” in 2022, believes the first cryptocurrency is in the early stages of a new bullish cycle with targets at $100K.

Cryptocurrency exchange Coinbase is considering launching a so-called “flatcoin” linked to the inflation rate. The value of the token would reflect the cost of living.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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