Crypto Market Reacts: Binance CEO Changpeng Zhao Steps Down
November 21 2023 - 1:24PM
NEWSBTC
In a shocking turn of events, Binance CEO Changpeng Zhao has agreed
to step down from the crypto exchange and has plead guilty to
“violating US anti-money laundering requirements.” The news is
currently being priced into the crypto market, leading to extreme
volatility in Bitcoin and altcoins, plus a lot of chatter on social
media. Let’s take a closer look at how the market and speculators
are reacting so far. CZ To Step Down, Pleads Guilty, Company
Charged $4B In Fines Earlier today, the US Department of Justice
revealed it would be announcing action against a cryptocurrency
company. The most dominant cryptocurrency exchange, Binance, was
the target of the enforcement action, and was ordered to pay $4.3
billion in fines. Binance CEO Changpeng “CZ” Zhao stepped down as a
result, and plead guilt to US anti-money laundering charges. The
crypto market sank in the earlier hours today in anticipation of
the news. Related Reading: Failed Bearish Signal Could Send Bitcoin
To $85K Next Month However, as soon as the Wall Street Journal
revealed the information publicly, Bitcoin price bounced back and
so did the altcoin market. Moments later, most of the upside price
action was wiped out. Price as traded within roughly a 4% range
today, but has traded across that several times since the news
broke, highlighting powerful intraday volatility. Bitcoin price is
extra volatile on the news | BTCUSD on TradingView.com The Crypto
Market Reacts To The Binance News While the market tries to price
in what just occurred, volatility will continue to ensue in the
near term. On X (formerly Twitter), notable figures are speaking
out in regards to CZ’s departure from Binance. On-chain analyst and
market commentator Will Clemente points out it is “just a matter of
weeks until Bitcoin ETF approval now” with Binance out of the way.
The company has long been cited as a key reason for the SEC
remaining hesitant to pull the trigger on a spot BTC ETF
application approval. Related Reading: Clear Skies: Why Bitcoin
Overhead Resistance Is Weak Messari Crypto CEO Ryan Selkis calls it
one of the “biggest catalysts we could have in crypto” between
ETFs, crypto-friendly legislation, and this $4 billion settlement
helping crypto be viewed as a “real industry.” Economist Alex
Kruger reveals that the settlement is ranked the 7th in financial
compliance history, next to names like JP Morgan, Bank of America,
Goldman Sachs, Wells Fargo, and several others. Tony is the author
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not be considered investment advice. Featured image from
Shutterstock, Charts from TradingView.com
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