Binance vs. SEC: Unraveling the 17% Plunge in My Crypto Portfolio

My crypto portfolio took a hit of about 17% last night after it was announced that SEC has sued Binance and its CEO CZ.

Bitcoin price dropped from about $27,150 to $25,500. At the time of writing, I was holding about 0.1 BTC long futures, with my average buy price at $27,125.

Trading with leverage is like a double-sided sword, it can make huge returns and it can also blow up your account easily. With my BTC estimated liquidation price (ELP) just under $25,000 I started to feel quite uncomfortable and deposited additional Bitcoin as collateral decreasing ELP to $22,500

Now when looking at the Bitcoin price chart, I do not see a bottom yet, and I'm extremely worried about Bitcoin touching $24,000 before moving lower to the 200-day moving average at $23,300. Breaking that support level, seeing Bitcoin at $20,000 wouldn't be a surprise at all.

Bitcoin price June 6, 2023

To protect from the potential massive downside I bought June 30, 2023, put option with a strike price of $23,000, paying about 0.0095 BTC premium.

Now in case BTC will keep falling under the roof I will have at least some type of insurance. The good news my insurance policy covers my Bitcoin position before reaching my ELP.

Additionally, I will keep adding a few more long future positions to lower my total average buy price + selling call options (above my buy price).

I'm seriously considering adding protective puts for my future positions. 

What are your thoughts? Are we at the start before something huge? From the talks around with good folks I feel bit scared that we indeed are heading not even to $20,000 but closer to $10,000. No timeframe though!