Bitcoin Drops to $55k on News of the US CFTC Investigating Binance 16

Bitcoin Drops to $55k on News of the US CFTC Investigating Binance

In brief:

  • According to Bloomberg, the US CFTC is probing Binance on whether it allowed US residents to trade derivatives on the platform
  • Bitcoin took a $2k nosedive from $57k to $55k as a result
  • March 12th might be a cursed date for Bitcoin as the Coronavirus dip happened exactly one year ago

The US CFTC (Commodity Futures Trading Commission) is reportedly probing whether Binance knowingly allowed US residents to trade derivatives on the platform. According to Bloomberg, the CFTC is investigating Binance on concerned that it allowed Americans ‘to place wagers that violated US rules’. The report by Bloomberg goes on to point out the following queries by the CFTC.

The CFTC is seeking to determine whether Binance, which isn’t registered with the agency, permitted U.S. residents to buy and sell derivatives that the regulator polices, said the people, who asked not to be identified because the probe is confidential.

Binance, which has an office in Singapore but says it lacks a single corporate headquarters, hasn’t been accused of misconduct and the investigation may not lead to an enforcement action.

Bitcoin Drops by $2k to $55k

Before news broke of the CFTC investigating Binance, Bitcoin was trading comfortably at the $57k price area. Bitcoin then dropped to $55k as soon as the Bitcoin and crypto trading communities got wind of the news development.

At the time of writing, Bitcoin is trading at $55,700 as the King of Crypto provides mixed signals as to what its next course of action will be.

Is March 12th a Cursed Date for Bitcoin?

To note is that today is exactly one year since Bitcoin plunged hard by over 50% due to financial fears as a result of COVID19 being declared a global pandemic.

News of Binance being investigated by the CFTC happening on the same date has led many to speculate as to whether today is a ‘cursed day for Bitcoin’.

Adam Cochran, a partner at Cinneamhain Ventures and a Professional analyst, best summarized this theory via the following tweet.