BTC is currently trading above the $10.5K level of support after plunging briefly under $10,400. This spike lower came on the heels of news that the CFTC had charged the founders of BitMEX for violating multiple regulations.
Shortly after the news broke, traders liquidated millions in BTC, causing prices to correct lower. However, the BTCUSD pair has since shown incredible resilience to bounce back to $10,552 during press time.
BTCUSD Chart by Tradingview
Another shocking event that would normally be enough to send the crypto market collapsing occurred on Sep 26, when popular crypto exchange Kucoin got hacked. Despite the security breach that resulted in BTC falling by about $400 in total, the king coin has held up surprisingly well.
The recent flurry of extremely negative news in the crypto space has threatened to send the BTC price tumbling. However, the flagship crypto hasn’t experienced a massive selloff, highlighting just how resilient support at $10,000 has been so far.
Analyst: Fears Regarding BTC are Misplaced
The BTC bulls have successfully defended against any significant downside despite the multiple bear-favoring news in recent days. However, a substantial number of traders have succumbed to the market jitters and sold off their coin holdings.
The selloff prompted on-chain analyst Willy Woo to note that the crypto market is “scared for all the wrong reasons.”
While speaking about Bitcoin’s present outlook, Woo noted that the recent bear-favoring developments could spur growth in the crypto market.
“Fundamentally the market is scared for all the wrong reasons. MEX did NOT get hacked. No traders will lose coins. Futures exchanges will clean up their practices. We’ll see less volatility, less scam-wicking, more spot volumes, more organic moves, more institutional money,” he tweeted.
The analyst also pointed to the massive inflows of capital from new investors, explaining that the BTC’s mid-term outlook remains strong.
UNI Token Drops Amid Regulatory Crackdown Fears
Uniswap’s UNI token was hit particularly hard by recent events in the crypto sphere. After it peaked at highs of $8.50, the UNIUSD pair has now slipped below the $4.0 mark.
The CFTC’s decision to charge BitMEX founders may have contributed to this decline as some traders fear that regulators could also crack down on DeFi.
One trader even noted that it is “naïve” to assume that financial watchdogs won’t eventually come after DeFi trading platforms like Uniswap.
The growing anticipation of a regulatory crackdown against DeFi products has resulted in additional sell-side pressure to UNI’s order books. The UNI price has since plunged by over 8% to trade at $3.986 during press time.
UNIUSD chart by TradingView