Bitcoin Drops Below $30K After Binance Sell Order, UK Inflation Data
• Bitcoin (BTC) was hovering near $29,300 on Wednesday, down 3% over the past 24 hours.
• Ether (ETH) followed a similar pattern, dropping below $2,000 on Wednesday for the first time in almost a week.
• Decentralized exchanges (DEX) volumes had been surging amid growing concerns about their centralized counterparts.
Bitcoin Hovers Near $29.3K After Binance Sell Order
Bitcoin (BTC) was hovering near $29,300 on Wednesday, down 3% over the past 24 hours after a massive sell order on Binance sent the price tumbling. The largest cryptocurrency by market cap recently fell below $30,000 and dipped as low as $29,045 at one point according to CoinDesk data. Ethereum (ETH) followed a similar pattern, dropping below $2,000 for the first time in almost a week and currently trading around $1,981. Most major cryptos were also in the red including Uniswap’s UNI and Aave’s AAVE sinking 6% and 7%, respectively while Maker’s MKR tanked by 5%. The CoinDesk Market Index measuring overall crypto market performance was also down 3%.
UK Inflation Data
The decline of Bitcoin caught traders who were betting on an increase off guard due to majority of BTC liquidated positions being long according to data from Coinglass futures and trading platform. This came after U.K inflation data released earlier this day showed that consumer prices rose to an annual rate of 0.7 percent in March from 0.4 percent in February which is higher than economist expectations of 0.6 percent due to rising fuel costs and higher food prices all driven by Brexit-related supply chain issues as well as pandemic related disruption impacting global trade flows resulting in increased cost pressures for households across Britain .
Growing Concerns About Centralized Counterparts
Decentralized exchanges (DEX) volume has been surging amid growing concerns about their centralized counterparts according to Joshua Frank CEO of digital asset information platform The Tie who noted that this trend will likely continue until more regulatory clarity is reached regarding centralized exchanges specifically with respect to US regulations such as FinCEN’s proposed changes regarding self-hosted wallets which have caused some confusion within the industry .
Featured Speaker Alex Thorn at Consensus 2023
Alex Thorn Head of Firmwide Research at Galaxy has been invited to speak at Consensus 2023 where he will share his take on „Bitcoin and Inflation: It’s Complicated“. He will be discussing how Bitcoin’s deflationary nature may not be able to protect against inflationary trends caused by global macroeconomic conditions such as those seen with UK’s recent inflation figures .
Conclusion
In conclusion it appears that Bitcoin is still struggling to regain its perch above psychologically important threshold levels despite recent bearish news from U.K.’s inflation data as well massive sell orders being placed on Binance causing it dip below certain key levels however decentralized exchange volumes are increasing amid these conditions suggesting further regulatory clarity might be needed for true recovery especially concerning US regulations such as FinCEN’s proposals regarding self-hosted wallet implementation which remain uncertain at this time