Bitcoin is having a terrific week. Since the market opening on Monday, the BTC rate has recovered from $35,000 to $40,000, adding more than 15% to its value. Significant growth was triggered by rumors that Amazon (NASDAQ:AMZN) plans to start accepting payments in bitcoins by the end of this year, and in 2022 the internet giant may have its own token.
Immediately after that, crypto enthusiasts began to wonder how much additional cash flow the crypto industry would receive if a company with a turnover of tens of billions of dollars was integrated into it. However, this rumor turned out to be fake. Even though the market was deprived of fundamental support, investors' interest in purchases has not fizzled out. Bitcoin managed to stay in the $40,000 area.
Should we expect further growth in Bitcoin? Analysts at AMarkets believe it will not. An asset's growth should be always backed by solid fundamental support. Otherwise, it is speculative and temporary. As the news backdrop remains negative, the likelihood that Bitcoin will correct downwards and retreat to the support of $30,000 is still much higher.
Among the negative news of recent days, we should highlight the decision of the largest cryptocurrency exchange Binance to impose maximum leverage on its Binance Future futures platform. From July 19, according to the exchange's founder and CEO Changpeng Zhao's tweet, Binance Futures traders will not be able to open positions 20 times greater than their own funds.
A similar decision was made by another popular crypto exchange FTX, which also announced a reduction of its maximum leverage to 1:20. Previously, FTX clients could trade with up to 1:100 leverage. In addition, the Binance exchange has slashed its daily withdrawal limit for unverified users to 0.06 BTC. The management of both exchanges justified changes as necessary to protect the interests of their clients. However, it looks more like a mere desire to please regulators and keep their businesses running. Apparently, new restrictions are right around the corner.
The news coming from China doesn't back bitcoin purchases either. The ongoing crackdown on miners is leading to a drop in the hash rate. Earlier, the Chinese government banned cryptocurrency trading and obliged exchanges to stop providing services in the country. The national news agency Xinhua notes that these actions are aimed at curbing money laundering directly associated with the operation of cryptocurrency exchanges.
That being said, until the market demonstrates a positive backdrop, the BTC sell-off can start any minute now.