- Bitcoin price falls, tethered around $50k
- Is Binance under investigation?
- Eth2 Validator count falling on ETH/USD price expectations
- Asia’s biggest bank launches crypto custody and trust services
Is Binance Under Investigation by the IRS and DOJ?
In what Binance representatives say is FUD, reports reveal that the United States Department of Justice (DOJ) and the Internal Revenue Service (IRS) are investigating the world’s largest cryptocurrency exchange by client count.
Although they are not accusing Binance of any wrongdoing, Bloomberg reports that officials working on money laundering and tax offenses sought information from people with insight on Binance’s business operations.
Binance has grown in stature since launch, albeit reports from Chainalysis revealing that funds from criminal activities flow through the exchange than any other.
This is not the first time Bloomberg is reporting about Binance being investigated by United States Authorities.
In March, they said the exchange was under the Commodity Futures Trading Commission (CFTC) lenses, an allegation dismissed by Changpeng Zhao as FUD.
Gas Fees Rise as Eth2 Validator Count Decline to a 17-Month Low
Meanwhile, as Ethereum Gas fees spiral out of control, new reports show that few ETH holders are keen on becoming Eth2 validators.
Ethereum will switch to a Proof-of-Stake consensus algorithm in the months to come, preferring validators over miners.
However, the number of validators has been declining over the past few weeks, dropping to a 17-month low.
This, from a more optimistic perspective, could be due to rising ETH prices.
Blasting past $4.2k this week, analysts predict ETH/USD prices to further expand in coming sessions, with EIP-1559 being an expected trigger.
One of Asia’s Largest Banks to Offer Crypto Custody and Trust Services
On the adoption front, Asia’s DBS Bank has launched crypto custody and trust services. This is to satisfy the growing demand for crypto assets.
The service will be through its private banking arm, DBS Group.
Accordingly, high net-worth individuals can store an array of cryptocurrencies, including BTC and ETH, with the bank.
Bitcoin Technical Analysis
How the crypto market reacts in the next few days depend on the strength of Bitcoin. That is even if its dominance has been decreasing.
As of May 14, the BTC/USD price is stable on the last day but down 10 percent week-to-date versus the greenback.
At the same time, trading volumes have contracted, dropping 28 percent to $78 billion.
Therefore, a combination of fear and low participation may be a basis for a sell-off. As seen from the daily chart, BTC/USDT is trending at around $50k.
If prices fall below the $48k to $50k support zone, Bitcoin may crash to $42k.
On the flip side, if BTC prices find support at April 2021 lows and rebound, rewinding losses of May 12, BTC/USD could soar to $60k in a buy trend continuation.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.