4 Major News That Shook The Whole Crypto Market

This week, the imprisonment of two key crypto personalities and the announcement of Russia's cryptocurrency prohibition have shocked the whole crypto community from top to bottom. 

The crypto market is known for its volatility, and some recent major events have caused significant upheaval within the community. Let’s delve into the four major events that have transpired this week and their potential impact on the crypto market and traders.

CZ’s 4-Month Prison Sentence Shook Crypto Market

Changpeng ‘CZ’ Zhao, the co-founder and former CEO of Binance, recently faced a pivotal moment in his legal battle with the United States Department of Justice (DOJ). Judge Richard Jones sentenced CZ to a 4-month prison term, deviating significantly from the DOJ’s initial recommendation of a three-year sentence. 

This decision was unexpected and was a result of Judge Jones’ perspective that there was insufficient evidence to support the DOJ’s claim of illegal activity on CZ’s part. This lenient sentence might suggest the judge’s belief in CZ’s lesser role in the alleged violations.

Binance CZ got 4 months prison

However, CZ’s legal battles are not over. Despite the 4-month sentence, he faces ongoing scrutiny and possible regulatory action. His case reflects a broader trend of increased regulatory oversight in the crypto industry. Binance’s recent decision to pay a settlement fee of $4.3 billion to the DOJ highlights the scale of the legal challenges the company faces.

CZ’s legal troubles and the outcome of his sentencing could have a ripple effect on the sentiment and confidence of crypto traders and investors. A leader of such a high-profile crypto exchange facing legal challenges can shake the confidence of market participants, leading to potential market instability and heightened caution.

Charges Against Bitcoin.com Founder Roger Ver

Roger Ver, known in the crypto community as ‘Bitcoin Jesus,’ has been charged with tax evasion, mail fraud, and filing false tax returns. This news has sent shockwaves throughout the crypto world, as Ver was an early Bitcoin investor and a vocal advocate of the cryptocurrency. 

According to the United States Department of Justice (DOJ), Ver allegedly engaged in fraudulent activities, including failing to report approximately $48 million in capital gains from the sale of Bitcoin and other assets. Ver’s alleged misdeeds took place during a time of rapid growth in the crypto market, particularly during the bull run of 2017 when he reportedly sold many of his 70,000 BTC for around $240 million.

Roger Ver faces serious charges crypto market

The charges against Ver raise questions about compliance with tax laws within the crypto space. Ver’s arrest in Spain and planned extradition to the United States to stand trial mark a significant moment in the crackdown on crypto-related financial crimes. 

Reactions to Ver’s arrest on social media have been mixed. While some sympathize with Ver, acknowledging his contribution to the early adoption of Bitcoin, others believe he deserves the consequences of his alleged actions. His legal troubles could affect market sentiment and potentially damage the reputation of other crypto figures and projects he has been associated with.

Russia’s Proposed Crypto Ban

The recent news of Russia proposing to ban the circulation of private cryptocurrencies has created ripples in the global crypto market. While the legislation has not yet been fully passed, the proposal, if enacted, could have significant implications for the industry.

The proposed ban, re-introduced by State Duma member Anatoly Aksakov, aims to ban the circulation of private cryptocurrencies starting from September 1. However, there are exceptions in the proposal for crypto miners, mining pools, and central bank trial projects, pointing toward a shift toward the digital ruble.

Aksakov’s statements indicate a strong stance on maintaining the ruble as the only legitimate currency in Russia. His assertion that cryptocurrencies act as a “quasi-currency” reinforces the government’s approach to tighten control over the financial system.

While initial reports suggested that Russia would enact a total ban on all cryptocurrencies, including Bitcoin (BTC), subsequent clarifications revealed the situation is more nuanced. Anton Gorelkin, a lawmaker and deputy chairman of the State Duma Committee on Information Policy, Information Technologies, and Communications, emphasized that the proposal does not intend to ban the circulation of cryptocurrencies outright.

Instead, the proposed legislation aims to regulate the organization of cryptocurrency exchanges and exchangers outside an experimental legal regime. This clarification suggests a more controlled approach to crypto trading rather than an outright ban.

FOMC Meeting and Its Implications

The Federal Open Market Committee (FOMC) meeting, which is going to be held on May 01, have always played a crucial role in shaping the crypto market. Potential interest rate hikes could lead to market corrections, impacting both Bitcoin and Ethereum prices.

However, if the FOMC decides to pause or cut interest rates, the crypto market could experience a significant boost, potentially pushing Bitcoin’s price toward the $70,000 mark.

The meeting also adds an element of uncertainty, causing traders to brace for potential market volatility. In particular, rising inflation rates and macroeconomic factors could determine the trajectory of the crypto market.

How These Events Affect the Crypto Market and Traders

The recent events have the potential to drastically affect the price and sentiment of the crypto market and its traders:

▪️ Market Volatility: The news of CZ’s sentence and Roger Ver’s charges could lead to increased market volatility, causing traders to reassess their positions.

▪️ Loss of Trust: The legal troubles of key figures like CZ and Ver might erode trust in the crypto market, especially in the long term.

▪️ Regulation Concerns: Russia’s potential ban and the FOMC meeting highlight the regulatory risks associated with the crypto market, causing traders to be more cautious in their investments.

▪️ Market Correction: If the FOMC hints at interest rate hikes, traders might anticipate a market correction, leading to a sell-off in both Bitcoin and Ethereum.

▪️ Opportunities for Profit: While some traders may be apprehensive, others might see these events as opportunities to profit from market fluctuations.

Overall, the recent events have introduced a great deal of uncertainty and potential volatility into the crypto market. Traders must stay vigilant and adapt their strategies to navigate this turbulent period.

Conclusion

The current state of the market indicates that the market has to achieve more maturity since it is still affected by day-to-day developments significantly. Meanwhile, experts believe that the market is currently showing the past price trend that was shown after the successful conclusion of the Bitcoin halving event.

As a result, investors and traders have to undertake some severe caution before engaging with the current state of the crypto market. Always remember, to do your own research before engaging with any financial market.

To learn more about these kinds of crypto market developments, go check out SunCrypto Academy.

 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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