Crypto Pre-drink: June 4, 2024

Crypto Pre-drink


  1. Bitcoin briefly surpasses $70K, signaling potential market recovery with increased holder accumulation.
  2. Former Binance CEO starts prison term, affecting Binance's compliance landscape after a hefty $4.3 billion settlement.
  3. Ethereum shows strong performance, with technical indicators suggesting further bullish momentum ahead.


In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.




Bitcoin’s Recovery and Market Dynamics


Bitcoin reached just over $70,000 early Monday before pulling back to around $69,200, up 2% from the previous day. This activity marks a slight recovery in a market that has been largely stagnant since March when Bitcoin hit an all-time high above $73,000. Bitfinex analysts report that the downturn caused by long-term holders selling off has stalled, with these holders beginning to accumulate Bitcoin again for the first time since last December.


Outlook and Resistance


Despite the recovery, Bitcoin faces resistance at $70,000 and $73,000. Swissblock notes that minor pullbacks are viewed as buying opportunities, with $67,000 serving as solid support. The market could see added volatility from upcoming key economic data and a Federal Reserve meeting, making the next week crucial for cryptocurrency observers.




CZ’s Sentencing and Binance’s Regulatory Troubles


Changpeng “CZ” Zhao, former CEO of cryptocurrency exchange Binance, has started a four-month prison sentence in California’s Lompoc II, a low-security facility. Zhao, who violated the Bank Secrecy Act by failing to implement an adequate know-your-customer (KYC) program, was also fined $50 million and resigned from his role at Binance. This sentence follows a settlement where Binance paid $4.3 billion in fines for money laundering and sanctions violations.


Prison Conditions and Contrast


Zhao, listed as inmate number 88087-510, is serving at Lompoc II in Santa Barbara County, where conditions are notably mild, and inmates may work on a farm. This contrasts sharply with the harsh conditions at the New York facility where former FTX CEO Sam Bankman-Fried, serving a 25-year term, is incarcerated. The Bureau of Prisons notes that Lompoc II currently houses 2,160 inmates.




BTC: Bitcoin’s weekly chart shows potential for a breakout. The MACD remains high, suggesting that this week will primarily feature broad fluctuations without any drastic drops. On the daily chart, Bitcoin has been oscillating with several days of doji candlestick formations, indicating minimal price volatility. The price continues to converge with the MA30 line, and they are expected to meet within a few days, after which a substantial upward trend is anticipated.

ETH: From the weekly chart, Ethereum’s performance last week was quite strong. Despite a significant rise, the pullback was not considerable, and the bullish momentum appears sufficient for another upward push. Based solely on technical analysis, this week’s outlook is promising.



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