BTCUSDT Open Interest Tumbles Amid Coinbase-US IRS Debacle, Bitcoin Crash Imminent?
Bitcoin failed to build upside momentum on Hong Kong’s crypto regulatory regime launch on June 1. BTC price tumbled 2%, extending Wednesday’s downfall as Bitcoin closed the month 10% lower for the first time this year.
Several factors including macro, technical, and regulatory challenges are heavily impacting the crypto market, causing a market-wide selloff.
Bitcoin Price Falls As US IRS Can Access Coinbase’s User Trading Data
Whales and investors dumping and moving their Bitcoin and crypto holdings off Coinbase as a court ruling revealed that the US Internal Revenue Service (IRS) can access user trading data on Coinbase. Whales dumped and moved over $1 billion in Bitcoin off Coinbase in the last few days.
Moreover, the worsening crypto landscape and regulatory challenges caused BTCUSDT open interest to fall massively as traders got liquidated or closed their positions. BTC longs liquidation continues to rise causing prices to tumble significantly. The negative funding rates will potentially cause Bitcoin price to fall below $25k.
Also Read: Crypto Market Selloff: Here’s Why Bitcoin, Ethereum Price Falling Today
US House passed the Biden-McCarthy Debt Ceiling deal, now it heads for US Senate voting to pass before the debt fault deadline of June 5. Some Senate members such as Senator Bernie Sanders look to oppose the Debt Ceiling deal. Meanwhile, Bank of Japan Governor Kazuo Ueda proposes to raise interest rates as inflation continues to rise.
Meanwhile, US Federal Reserve official plans to pause in June and raise rates later amid U.S. economic slowdown. According to CME FedWatch Tool, the probability of a pause is 63%, rising from last week.
The global stock market rose on Thursday amid positive sentiments about the debt ceiling deal and the US Fed pause in June. The US Dollar Index (DXY) remains above 104, putting selling pressure on Bitcoin price.
BTC price tumbled 2% in the last 24 hours, with the price currently trading at $26,900. The 24-hour low and high are $26,671 and $27,346, respectively. Furthermore, the trading volume has increased in the last 24 hours, indicating an interest among traders.
Also Read: Binance CEO “CZ” On First Digital USD (FDUSD) Stablecoin Support On Exchange
- Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”
- ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?
- Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
