Urgent: A sudden rise in cryptocurrencies after a harsh week… and accusations of a “criminal entity” By Investing.com

Investing.com – The market has plunged into a violent wave of losses throughout the week since Jerome Powell spoke last Friday about the continuation of the Fed’s hawkish policy, which pushed the drop below $20,000 levels, but the market is trying to recover today to witness a collective rally for most currencies.

The decline of Bitcoin and the crypto market came alongside the decline of the US stock market as concerns of increased interest prompted traders to migrate high-risk assets and head to which jumped to a 20-year peak.

criminal entity

Binance CEO Changpeng “CZ” Zhao has responded to critics and conspiracy theorists who claim that Binance is a “criminal entity” based in China and “secretly belonging to the pocket of the Chinese government.”

CZ’s response to critics came from a Thursday blog post via Binance, and stems from a Twitter quarrel with a former Washington Post journalist who asked him, “While I was here, who is Guangying Chen?”

He explained that the question relates to a conspiracy theory alleging that his girlfriend Guangying Chen is the secret owner of Bijie Tech (a company he founded in 2015) and possibly also Binance.

However, CZ explained that Chen is a colleague he met through a friend, who hired her to “manage the back office” at Bijie Tech before reassigning her back to Binance, adding that conspiracy theories later linked her to a corporate owner’s secret given that she was one of the The few who initially stayed in China.

Websites such as Internet Scam claim that Chen at one point owned a 93% stake in both Bijie Tech and Binance, among other things. CZ stated that the rumor stemmed from an “old campaign launched by a competitor via an anonymous microsite.”

Denied.. Chinese company

CZ also vehemently denied allegations that his company has close ties to China and its government, even going so far as to discuss some of his troubling personal and business experiences with Chinese authorities: “The biggest challenge for Binance today is that we (and every other offshore trading platform) have been designated a criminal entity in China. At the same time, our opposition in the West is bent backwards to portraying us as a “Chinese company.”

CZ sees the unintended conclusions come from the fact that he, along with a few other Binance employees of Chinese descent, makes Binance “an easy target for special interests, the media, and even policymakers who hate our industry.”

“The conclusion is that since we have Chinese-origin employees, and perhaps because I’m Chinese, we are secretly in the pocket of the Chinese government,” he said.

CZ said novels hacked by China are still circulating even though Binance has never been legally incorporated in China and has never operated like a culturally Chinese company.

Bitcoin mining..lower profits

Bitcoin mining difficulty has jumped 9.26% over the past two weeks, according to data from BTC.com. The site’s analysis shows that the network’s mining difficulty is the highest since January; It reached $30.97 trillion.

Experts believe that the increase in the difficulty is a healthy phenomenon that indicates the growth of the network, and on the contrary, the decrease in the difficulty raises concern, because it means that the miners decline their activity on the network, making it less effective.

Bitcoin mining is a process in which powerful computers are used to verify transactions on the Blockchain, and the miners are rewarded with each new Bitcoin mint. The power grid and rationing during a heat wave is a move that makes bitcoin mining easier.

Now that it is back in business after weeks and mining has become more difficult, the profits of these companies may decline due to the need for more computing power, and thus energy power while the value of Bitcoin remains stagnant; It is currently trading at $2,205, according to CoinGeco data, after it struggled for months to break the $25,000 barrier and fell more than 70% from its all-time high of $69,044 in November.

market now

Bitcoin, the largest digital currency, succeeded in holding out near the levels of $ 20 thousand, which fell below it for brief periods, before rebounding again above the important support levels.

The largest digital currencies increased during today’s trading in the range of 0.21% to levels of 20.0 thousand dollars, after they fell earlier to levels near 19.7 thousand dollars.

As a result of the recent wave of declines, Bitcoin is falling around 6.2% within a week.

On the other hand, it rose by more than 1.47% as the expected upgrade date approaches, while Ethereum is declining in the range of 3.87% within a week.

Binance Coin rose to levels of $ 278, an increase of 0.36%, and the currency of 1.55% to levels of $ 0.32, and rose 1.56% to levels of $ 0.45 during today’s trading.

The currency jumped by 0.15% to levels of $ 31, increased 0.57% to levels of $ 0.064, and rose 2.7% to levels of $ 7.2.

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