Bitcoin, the world’s most popular cryptocurrency, has seen a 10% drop in value this week, raising concerns among investors about the future of digital currency. Despite being one of the largest crypto assets, liquidity appears to be thin, causing concern for traders seeking to fill large orders without impacting prices.
Experts warn that the recent drop could lead to further declines, with some predicting a drop to $25,000. This level is considered a significant support area, and a drop below this could spell disaster for uptrend buyers.
SEC Subpoenas Marathon Digital for Securities Law Violations
Adding to the uncertainty, Marathon Digital, a prominent Bitcoin mining firm, has been subpoenaed by the Securities and Exchange Commission (SEC) for alleged securities law violations. The investigation is part of a larger inquiry into a data center in Montana.
Marathon Digital, which is the second-largest listed Bitcoin miner in the United States, has stated its intention to cooperate fully with the SEC’s investigation. However, this news has added further pressure to the already fragile crypto market.
While the future of Bitcoin remains uncertain, many experts believe that the banking crisis will not go away anytime soon and could worsen. The US economy is also facing a possible major collapse later this year and into 2024 while the ongoing conflict between Russia and Ukraine escalates.
Bitcoin’s recent drop in value, coupled with liquidity concerns and regulatory scrutiny, has added to the uncertainty surrounding the cryptocurrency market. Investors should tread carefully and closely monitor market developments in the coming weeks.