BTCUSDT Open Interest Tumbles Amid Coinbase-US IRS Debacle, Bitcoin Crash Imminent?

Hong Kong launched its crypto regulatory regime on June 1, but Bitcoin did not gain any momentum. BTC’s price fell 2% on Thursday, continuing Wednesday’s decline. Bitcoin ended the month with a 10% decrease for the first time in this year.

The crypto market is being affected by a number of factors, including technical, macro and regulatory issues. This has led to a sell-off across the board.

Bitcoin price drops as US IRS can access Coinbase’s user trading data

Whales, investors and traders are dumping from Coinbase and moving their crypto and Bitcoin holdings away. A recent court ruling has revealed that the US Internal Revenue Service can access trading data of Coinbase users. Whales have moved more than $1 billion worth of Bitcoin from Coinbase over the past few days.

The crypto-market selloff and regulatory challenges have also caused BTCUSDT to drop massively, as traders liquidated their positions or closed them. BTC liquidation is on the rise, causing prices to plummet. Negative funding rates could cause Bitcoin to drop below $25,000.

The US House has passed the Biden/McCarthy Debt Ceiling Deal. Now it is up to the US Senate to vote on the deal before the June 5 deadline for debt default. Some senators, such as Senator Bernie Sanders, are opposed to the Debt Ceiling agreement. Kazuo Ueda, the Governor of Bank of Japan, has proposed to increase interest rates in response to inflation.

A US Federal Reserve official has announced that they will pause their rate hikes in June to allow the economy of the United States to slow down. According to CME FedWatch tool the probability of a delay is 63%. This is up from last week.

Global stock markets rose on Thursday, amid positive sentiments over the debt ceiling agreement and the US Fed’s pause in the month of June. The US Dollar Index ( DXY ) is still above 104 and this puts pressure on the Bitcoin price.

BTC’s price has fallen 2% over the past 24 hours. The price is currently at $26,900. The low and high for the last 24 hours are $26,671 a $27,346, and respectively. The trading volume increased over the past 24 hours, which indicates an increase in interest from traders.