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Bitcoin Plummets Below $57k as Market Analysts Express Doubts on Swift Recovery

Bitcoin’s price tumbled below the $60,000 mark shortly after news broke of the verdict regarding Binance Founder Changpeng Zhao. According to data from CoinMarketCap, Bitcoin (BTC) is currently trading at $56,900. This decline in price has coincided with a surge in liquidations on futures contracts, reaching nearly $380 million per day, as reported by Coinglass.

The crypto market downturn followed closely on the heels of Changpeng Zhao’s sentencing to four months in prison. Analysts are pointing to this development as a catalyst for the recent price drop.

Alex Kuptsikevich, a senior market analyst at FxPro, highlighted that the closing price on April 30 hit its lowest point since late February, breaching support levels from March and April as well as the psychologically significant $57,000 mark. Kuptsikevich expressed skepticism about Bitcoin’s ability to rebound swiftly, citing historical data.

“Over the past 13 years, bitcoin has ended a given month up on seven occasions and down six times. The average rise was 31.3%, and the average decline was 14.5%. Meanwhile, over the last three years, during May, BTC has slid 20% on average,” Kuptsikevich remarked.

Arthur Firstov, Chief Business Officer at Mercuryo, emphasized Bitcoin’s status as a risk asset, especially evident amidst the recent tumult in the cryptocurrency market.

“As we see steep falls in the prices of leading digital tokens such as Ethereum and Solana, the cryptocurrency space could even be a bellwether for conventional markets ahead of today’s policy decision from the Fed. Indeed, Bitcoin’s every move is now scrutinized by the pillars of traditional finance,” Firstov noted.

Zhao’s legal team underscored his cooperation with investigators and U.S. authorities during the proceedings, emphasizing that he is not currently involved in managing Binance. Nevertheless, the announcement of his sentencing triggered a sharp downturn in Bitcoin’s price, causing nearly the entire crypto market to slip into the red zone.

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