Binance Drama Causes Crypto Prices To Dance On The Edge – Details
November 22 2023 - 4:20AM
NEWSBTC
The prices of prominent cryptocurrencies, such as bitcoin and
Binance Coin, experienced a decline subsequent to the emergence of
reports indicating that Changpeng Zhao, the founder and CEO of
Binance, admitted guilt in relation to charges of anti-money
laundering and several other criminal violations. This admission
was made as part of a substantial settlement, amounting to billions
of dollars, reached between Zhao and regulatory authorities in the
United States. Binance Coin had a decline of almost 6% following an
earlier increase of up to 5% during the day. This fluctuation in
value was driven by investors who were optimistic about the
resolution of the ongoing multiyear investigation involving the
world’s largest cryptocurrency exchange. Related Reading: Sam
Altman’s Worldcoin Token Makes Headlines With 24% Surge Amid OpenAI
Drama In the aftermath of the market downturn, investors holding
long positions on BNB experienced widespread liquidation. At the
time of writing, BNB long liquidations approached $3 million within
the hour following the disclosure of the Binance developments. The
impact of the action had a significant influence on the remaining
cryptocurrency market. The leading digital currency, Bitcoin (BTC),
experienced a decrease of 1.55%, remaining slightly below the
$37,000 mark. In a similar vein, Ethereum (ETH) observed a decline
of around 2%, with its value reaching $1,993. Additional
cryptocurrencies, like Ripple (XRP), experienced a decline of 3.2%.
Similarly, Solana witnessed a decrease of almost 4%, while Polygon
and Uniswap recorded losses of 7.6% and 3.6%, respectively. Zhao is
currently confronting charges of violating criminal anti-money
laundering laws, a charge he acknowledged responsibility for after
resigning. Today, I stepped down as CEO of Binance. Admittedly, it
was not easy to let go emotionally. But I know it is the right
thing to do. I made mistakes, and I must take responsibility. This
is best for our community, for Binance, and for myself. Binance is
no longer a baby. It is… — CZ 🔶 Binance (@cz_binance) November 21,
2023 In addition, Binance has agreed to a $4.3 billion settlement
with the US authorities, which is among the biggest, if not the
most significant, resolutions in the history of the cryptocurrency
market. The most recent FOMC minutes also appear to have compelled
investors to trade cautiously in light of the continued market
concerns, which is why cryptocurrency prices were down today.
Notably, the drops in the prices of the majority of the main
cryptocurrencies suggested that investor opinion may be changing.
Market cap of cryptocurrencies at $1.35 trillion. Chart:
TradingView.com Meanwhile, notwithstanding the early declines in
price, some observers of the sector think that the Binance scenario
may serve to further spark the recent surge in cryptocurrency
prices. According to Jeff Embry, the managing partner of Globe 3
Capital, a crypto hedge fund, the reported settlement involving
Binance holds significant importance in the context of addressing
the consequences and rectifying the negative effects of the bear
market. Related Reading: Bitcoin About To Smash The $38,000 Barrier
– Decoding the Next Moves “Bear markets wash out many of the bad
businesses, business practices, inefficiencies and bad actors,” he
said. Fineqia Research Analyst Matteo Greco said the crypto
industry will benefit in the long run from Changpeng Zhao’s
resignation and Binance agreeing to pay a fine of $4 billion or
more. (This site’s content should not be construed as investment
advice. Investing involves risk. When you invest, your capital is
subject to risk). Featured image from Shutterstock
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