Bitcoin holds on to $28,000 as regulation continues to worry investors

By Alejandra Zamora

Date: Friday 31 Mar 2023

Bitcoin holds on to $28,000 as regulation continues to worry investors

(Sharecast News) - Cryptocurrencies are trading mixed on Friday. Bitcoin (BTC) has dropped 2.59% over the past 24 hours, but remains manages to hold on to $28,000 ($27,790), while Ethereum (ETH) has risen 0.48% to $1,789.
Despite the fact that the sector has faced a few weeks of tough regulatory measures, bulls are well positioned to make gains of up to $1.4 billion on the monthly expiration of $4.2 billion in BTC options.

Regulation is one of the issues that continues to worry investors, after the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder, Changpeng Zhao, for "numerous violations" of trading and derivatives law.

The regulator wants the exchange to pay the trading profits, revenues, salaries, commissions, loans and fees it received from U.S. citizens, in addition to facing civil penalties for these legal violations.

On a technical level, Bitcoin "could be shaping a trend continuation figure, so we will be watching closely for confirmation of a break of the $29,045 resistance. This would be a new sign of strength that would make us think of an extension of the rises up to the $35,000 resistance," explained César Nuez, analyst at Bolsamanía.

"The first level of support could be located at the lows of the last consolidation at $26,520. As long as it keeps trading above these prices, we will remain optimistic for the coming weeks," Nuez added.

Cryptocurrencies are also awaiting US macro data. Today, on Friday, the PCE deflator, the Federal Reserve's (Fed) preferred inflation measure, will be released.

The consensus expects for there to be signs of cooling, although it is expected to remain stable on an annual basis around the 4.7% mark. This figure will set the tone for the market in the coming days, as it may support a final Fed rate hike in May.

"A read in line with expectations, or ideally lower than expected could keep the Fed hawks at bay, and let the dollar further relax," stated Ipek Ozkardeskaya, senior analyst at Swissquote.

In other market news, most assets are trading flat. Cardan (ADA), for example, has risen 2.08% and Solana (SOL) has dropped 1.92%.


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