Bitcoin: risks of falling to $25,000 – QCP Capital

The majority of the gains that Bitcoin had made since the start of the week have now been leveled out.

Regulators in the United States have cautioned investors about the potential dangers associated with investing in cryptocurrencies.

The CFTC has started to impose fines on cryptocurrency firms with increasing frequency.

The quantity of Bitcoin on exchanges is the least it has been since 2018.

The difficulty of Bitcoin mining has once again reached its highest point ever.

The difficulty of mining the first cryptocurrency increased by a slight 0.35%, reaching its peak at 57.32 T. The average hashrate since the last change in value was 410.27 EH/s.

The past three days saw a remarkable 9% increase in Bitcoin's value, which was a welcome change after the third quarter ended with a -12% decrease. Despite the positive seasonal trend, QCP Capital cautions that a retest of $25,000 is still a possibility.

CryptoQuant has reported that the amount of Bitcoin held on exchanges has reached its lowest point since January 2018. Additionally, 69% of all Bitcoin is held by HODLers who have not moved their coins in over a year. Santiment has also determined that the reserves of whales and sharks have grown by 41,500 BTC in the past month.

The US Securities and Exchange Commission (SEC) and the country's five financial regulators have issued a warning about the potential risks of investing in cryptocurrencies. In a joint statement, they cautioned that crypto assets may be highly volatile and used for market speculation, and crypto exchanges may operate without a license. As a result, investors may not be able to recover their funds in the event of a loss.

Rostin Banham, the head of the US Commodity Futures Trading Commission (CFTC), has announced that the agency has started to impose fines on cryptocurrency companies more frequently. He reported that the CFTC collected $6 billion in fines in the fiscal year 2023. Banham has urged for the acceleration of the formation of laws concerning cryptocurrencies and has requested legislators to grant the agency extra authority to regulate them.

A class-action lawsuit has been filed against Binance and its CEO Changpeng Zhao by a California investor, claiming unfair competition and intentional destruction of the FTX exchange. This is in reference to tweets posted by Zhao in early November 2022, one of which declared the decision to liquidate the company's assets in FTX exchange tokens.

PeckShield reports that since the start of 2021, attackers have stolen a total of $1.15 billion worth of cryptocurrencies. In September alone, a third of all losses this year occurred, with at least 22 hacks being recorded.