Bitcoin’s value dropped below $60,000 right after the sentencing of Binance Founder Changpeng Zhao. As per the latest data from CoinMarketCap, Bitcoin (BTC) is currently being traded at $56,900.
In the face of significant volatility, the number of liquidations on futures contracts in the cryptocurrency market has surged. Coinglass reported a daily liquidation volume of nearly $380 million.
Following the news of Changpeng Zhao’s four-month prison sentence, the cryptocurrency market experienced a downturn. Alex Kuptsikevich, a senior market analyst at FxPro, stated that the closing price on April 30 hit a low not seen since late February, indicating a downward trend below the support levels from March and April, as well as a crucial psychological level.
Kuptsikevich expressed skepticism about Bitcoin’s ability to bounce back from this decline in the near future. Arthur Firstov, the Chief Business Officer at Mercuryo, pointed out that Bitcoin’s status as a risk asset has been underscored amid recent market turbulence.
Despite Zhao’s lawyers highlighting his cooperation with investigators and U.S. authorities, as well as his lack of current involvement in managing Binance, his four-month prison sentence had a negative impact on Bitcoin and the broader crypto market, pushing them into the red zone. The community remains divided over the perceived severity of Zhao’s sentence.