Bitcoin falls below $57k, market analysts doubt quick recovery
Bitcoin’s price fell below $60,000 shortly after the verdict was announced for Binance Founder Changpeng Zhao.
According to CoinMarketCap data, Bitcoin (BTC) is trading at $56,900 at the time of writing.
Against high volatility, the volume of liquidations on futures contracts on the crypto market has increased. The figure reached almost $380 million per day, according to Coinglass.
The crypto market began to decline shortly after Changpeng Zhao, the former head of the Binance crypto exchange, was sentenced to four months in prison.
Alex Kuptsikevich, the FxPro senior market analyst, told crypto.news that the closing price on April 30 had become the lowest since late February, confirming the downward trend and falling under March and April support and the psychologically important round level.
Kuptsikevich added that he does not expect Bitcoin to recover from its fall anytime soon.
“Over the past 13 years, bitcoin has ended a given month up on seven occasions and down six times. The average rise was 31.3%, and the average decline was 14.5%. Meanwhile, over the last three years, during May, BTC has slide 20% on average.”
Alex Kuptsikevich, the FxPro senior market analyst
Arthur Firstov, Chief Business Officer at Mercuryo, notes that Bitcoin’s status as a risk asset has been highlighted amid a tumultuous recent day that has seen a significant pullback in the cryptocurrency market.
“As we see steep falls in the prices of leading digital tokens such as Ethereum and Solana, the cryptocurrency space could even be a bellwether for conventional markets ahead of today’s policy decision from the Fed. Indeed, Bitcoin’s every move is now scrutinized by the pillars of traditional finance.”
Arthur Firstov, Chief Business Officer at Mercuryo
Zhao was sentenced to four months in prison. His lawyers emphasized his cooperation with investigators and U.S. authorities during the proceedings. The defense also pointed out that Zhao is not currently involved in managing Binance.
After the verdict was announced, Bitcoin fell, and nearly the entire crypto market entered the red zone.
