Explore the renewed optimism among Bitcoin enthusiasts as they anticipate a potential rally to $28,000, fueled by the ongoing legal drama between Binance and the SEC. Discover how historical data and upcoming events are shaping Bitcoin’s path, with insights from crypto experts.
In a surprising twist amidst the ongoing legal clash between Binance, the cryptocurrency exchange giant, and the United States Securities and Exchange Commission (SEC), the Bitcoin market has found renewed optimism. On September 18, Magistrate Judge Zia Faruqui delivered a significant blow to the SEC by denying their request for access to Binance.US’s systems and instead proposing specific discovery requests.
This development, which temporarily halts the SEC’s efforts to scrutinize the distinctions between Binance.US’s custody solutions and Binance International, prompted a positive reaction from the cryptocurrency market. Judge Faruqui has scheduled a follow-up hearing for October 12 and requested that the involved parties submit a status report prior to the event, according to reports by Yahoo Finance.
The decision to deny access to Binance.US’s systems, though seen as a setback for the SEC at first glance, has raised the stakes for Binance in this legal showdown. Binance’s founder and CEO, Changpeng “CZ” Zhao, continues to assert that Binance.US has never utilized Binance’s global custody solutions, despite documents from Binance.US on September 15 suggesting otherwise. The SEC, however, has yet to present concrete evidence of Binance attempting to mislead the court.
Despite the ongoing legal wrangling and the lack of decisive evidence, Bitcoin bulls have reason to celebrate. The cryptocurrency recently experienced a surge in price, reaching its highest level in over three weeks, surpassing the $27,000 mark. As of now, Bitcoin is trading at $26,733 with a market cap of $516 billion.
Market data suggests strong buying support from spot orders, indicating that large entities, often referred to as “whales,” are accumulating Bitcoin, seemingly undeterred by its current price fluctuations.
Bitcoin Bulls Anticipate $28,000 Rally Amid Seasonal Strength
With the Federal Judge setting the next hearing for October 12, cryptocurrency enthusiasts have approximately three more weeks before potential developments in the Binance.US and SEC legal battle. During this time, the possibility of a Bitcoin price rally above $28,000 remains tantalizingly on the table.
Moreover, historical data indicates that the final quarter of the year is typically Bitcoin’s strongest period in terms of performance, boasting an average return of over 35% over the past nine years, as reported by crypto services provider Matrixport. Markus Thielen, Head of Research at Matrixport, has even suggested, “If history is a guide, Bitcoin could reach $37,000 by year-end.”
October, in particular, has proven to be a robust month for Bitcoin, with positive returns recorded in seven out of the last nine years, averaging around 20%, as highlighted in Matrixport’s report. Additionally, Matrixport’s technical analysis has recently triggered a new breakout signal for Bitcoin. In the past ten instances when this model was activated, Bitcoin’s price increased by an average of more than 9% within a short timeframe.
As Bitcoin enthusiasts eagerly await October 12, another potential catalyst for the cryptocurrency looms on the horizon. This is the second deadline for Bitcoin spot exchange-traded-fund (ETF) filings. The SEC will have to make a decision to either approve or postpone these ETFs, as previously announced in August when the SEC delayed its decision on spot Bitcoin ETF applications until October.
In the midst of legal drama and regulatory uncertainty, Bitcoin’s future remains uncertain, but the bulls are undeniably back in action, eyeing the elusive $28,000 milestone as they brace for a potentially thrilling October.