Bitcoin (BTC) price dipped below $30,000 multiple times today and is having a tough time defending this crucial level. The initial wave of negative news was from the Exchange-Traded Fund (ETF) applications, where excited investors are now seemingly starting to calm down. The next significant move is expected either from the SEC or Grayscale. Should the ETF lawsuit be withdrawn, or should the SEC agree to a settlement, we may witness the second wave of the surge.
BitGo Retreats
BitGo today announced that they decided not to proceed with the acquisition of the crypto custodian Prime Trust, just two weeks after announcing their intentions. The company stated in a message released on Twitter that “This decision wasn’t easy, and BitGo continues to stay committed to our mission of providing trust in digital assets.” They mentioned that this decision followed “a significant effort and work to find a way forward.”
Earlier this month, BitGo Holdings announced that it had signed a non-binding agreement to purchase 100% of the equity of Prime Core Technologies, the parent company of Prime Trust. The company stated that the deal would provide operational continuity and long-term stability for Prime Trust customers. The sale of the beleaguered custodian firm was good news for the markets.
Prime Trust Troubles
Prime Trust, which has lost several major clients, including BinanceUS that was previously sued by the US Securities and Exchange Commission (SEC), is in a difficult situation. Established in 2018, Prime Trust had previously claimed to serve around 700 fintech and crypto clients. Regulatory pressure on crypto companies in the US region is adversely affecting the crypto custodian firm.
In the details of the SEC lawsuit, there is mention of a coded unnamed company called “Trust Company B”. There have been speculations on social media that this company could be Prime Trust. If the company gets included in the lawsuit, this could worsen its already difficult situation.
At the time of writing this article, the Bitcoin price stands at $29,719.
