The cryptocurrencies They operate with a majority of losses this Wednesday, October 22, pressured by the important news that the sector received after the million-dollar fine from Binance. Bitcoin has fallen more than 1% in the last 24 hours and is trading at US$36,500, while Ethereum remains slightly above US$2,000.
In the rest of the market, Binance Coin (BNB) sinks 9% since yesterday, while Dogecoin drops 2% and XRP 1%.
On Tuesday, Bloomberg announced that the platform was negotiating a fine of around US$4.3 billion to close its investigation in the United States, the company not only acknowledged the charges for money laundering and by violate international sanctions, but rather announced the resignation of its founder and until yesterday CEO, Changpeng Zhao, who pleaded guilty to all charges.
zhao, one of the most important personalities in the world of cryptocurrencies, must pay a fine of 50 million dollars and faces about 18 months in prison. However, the sentence, which will be announced next February, could be reduced after recognizing his guilt. Richard Teng, director of regional markets for the company, will be the new CEO, a move that had been brewing for months.
The apology of Changpeng Zhao, former CEO of Binance
On his X account (former Twitter), CZ acknowledged that he made “mistakes” and that he should “assume the responsibility” of these. “As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework established in our US agency resolutions,” he added, while stressing that US agencies do not They noted that Binance has “misappropriation of funds of users” nor that there is “manipulated the market.”
How can this news affect the price of Bitcoin?
Despite the recent falls, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, believes that the outcome of the Binance case “will barely affect the r“ecent appetite for bitcoin”. According to this expert, this is due to several factors, including the possible fund approvals ETFs, which could arrive next January, as well as another series of catalysts such as the scheduled ‘halving’ or halving of the Bitcoin network, scheduled for April 2024.
For his part, James Harte, market analyst at TickMill Group, highlights that bitcoin futures continue to consolidate near their recent highs. “The declines have occurred firmly and the market is currently holding around that level, suggesting that attention remains focused on a potential breakout to the upside. All in all, momentum appears to have weakened, suggesting a correction to the upside. 34,755 will be the first support ahead of greater support at the 32,185 level. As long as this area holds, long-term view remains bullishwith $39,860 as the next big target for the bulls,” he explained.
However, not all market observers defend this thesis. Samer Hasn, market analyst at XS.com, believes that the optimism of the markets may suffer a hard blow due to regulatory turbulence which embodies not only the Binance case, but also the latest lawsuit filed by the Securities and Exchange Commission (SEC) against the Kraken crypto exchange or the cessation of operations of Bittrex, which months ago had declared bankruptcy .
Source: Ambito
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