Crypto News Today: Liquidations Spike as BTC Tumbles to a Monday Low of $40,642

Key Insights:

• Former SEC Chief discussed the chances of a Binance collapse as the SEC reinforces its case.
• Bitcoin (BTC) tumbled to a Monday session low of $40,642 before steadying.
• US regulatory activity and BTC-spot ETF-related news remain focal points.

Binance Under the DoJ Microscope

On Saturday, the former Chief of the SEC’s Office of Internet Enforcement, John Reed Stark, shared his views on Binance.

In a lengthy assessment on X (formerly Twitter), Stark posted,

“Breaking News: A Binance Double Whammy. 1) Newly Unsealed US DOJ Filings Could Mean the End of Binance; and 2) SEC Files Supplemental Pleading Against Binance, Strengthening the SEC Binance Lawsuit Exponentially.”

Stark went on to say,

“There’s been a flurry of newly released Binance-related filings made by the U.S. Department of Justice (DOJ), which have shined glaring sunlight upon the extensive, robust and vigorous oversight that DOJ now enjoys over Binance.”

Stark added,

“At the same time, in their pending Binance-related enforcement action, the U.S. Securities and Exchange Commission (SEC) has begun to incorporate facts from the DOJ plea agreement into the SEC’s pending enforcement action against Binance and Changpeng Zhao (CZ).”

Stark highlighted the US Department of Justice oversight mechanisms. Notably, Stark estimated it could cost Binance hundreds of millions of dollars to implement and execute the DoJ’s requirements.

Stark concluded that,

“To me, it’s only a matter of time before the entire Binance plea deal collapses, resulting in additional charges for Binance, additional charges for CZ and new charges against anyone else (partner, customer, joint-venturer, collaborator etc.) nefariously intertwined with the Binance criminal enterprise.”

The comments come as the SEC prepares to strengthen its case against Binance. For the crypto market, the collapse of Binance could be catastrophic. An SEC win against the crypto platform would impact the US digital asset space.

On Monday, Binance coin (BNB) was down 3.63% to $231.1, joining the broader market in negative territory.

Bitcoin Tumbles to a Monday Session Low of $40,642

Bitcoin (BTC) gained 0.11% on Sunday. After a 1.02% loss on Saturday, BTC ended the week up 9.62% to $43,833.

However, BTC and the broader market faced a fierce sell-off early in the Asian market session. BTC tumbled to a morning low of $40,642 before retaking the $42,000 handle.

No apparent crypto events caused the sell-off. 4-Hour liquidations stood at $85.29 million, with the bulls accounting for $80.27 million.

While there was no immediate catalyst for the sell-off, concerns over Binance and Fed monetary policy jitters may have contributed to the losses. The US Jobs Report from Friday eased bets on a March Fed rate cut. There were no BTC-spot ETF-related updates to influence investor sentiment.

The total crypto market was down 4.52% ($73 billion) to $1,530 billion.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC break above the $42,900 resistance level would give the bulls a run at the Friday high of $44,747.

BTC-spot ETF-related updates and US regulatory activity remain focal points and will influence buyer demand.

However, a drop below the $41,585 support level would bring the $40,800 support level back into play.

The 14-Daily RSI reading, 60.23, suggests a BTC break above the $42,900 resistance level before entering overbought territory.

Ethereum Analysis

ETH sat above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the $2,300 resistance level would support a move to the Friday high of $2,388.

However, a drop below the $2,200 handle would give the bears another run at the $2,143 support level.

The 14-period Daily RSI at 57.43 suggests an ETH break above the $2,300 resistance level before entering overbought territory.