Can bitcoin hold gains, as U.S. regulators target crypto companies?

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The latest Distributed Ledger column from MarketWatch: a weekly look at the most important moves and news in crypto.

Binance, the world’s largest crypto exchange, was sued by the Commodity Futures Trading Commission Monday for alleged violations of the federal laws governing commodities markets.

Still, bitcoin had a remarkable run for the first quarter, up 70% since the start of the year, though it’s still down 60% from its all-time high in 2021. I wrote about possible reasons behind the rally here and here. U.S. regulators are “flexing their muscles and showing that, hey, even if you are not crypto businesses within the US, even if you’re offshore, we have the power to come up to you and regulate,” said William Cai, co-founder and managing partner at Wilshire Phoenix.

Macroeconomic conditions could have a more significant impact on bitcoin price in the near term, as investors look for any signs that may signal the U.S. being in a recession, according to the analysts.

 

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