Where Crypto Goes Next After The Humbling Of Binance?
November 23, 2023
The $4.3 billion Binance pact that was reached with the US authorities this week created new confusion for the largest cryptocurrency exchange in the world. But the crypto enthusiasts have been breathing an audible relief sigh, saying that the deal will lift quite a lot of uncertainty that is hanging over the industry.
“It’s nice to wake up in crypto and not worry about what will happen with Binance,”
Matt Hougan, the chief investment officer at Bitwise, said on X, which was formerly known as Twitter.
“2024-2025 is going to be so great.”
The settlement, as a couple of JP Morgan analysts added in a note, ended by adding,
“potential systemic risk emanating from a hypothetical Binance collapse.”
Michael Safai, who is a partner with the crypto trading organization Dexterity Capital, had argued that Binance’s
“resolution means a path forward for crypto and confidence that the asset class won’t be enforced out of existence.”
The movement in the cryptocurrencies and the related stocks in the outcome of the Binance announcement presented that the investors massively shared the same optimism.
Binance’s very own crypto token, BNB, had dropped by 13% within the hours after the announcement of the settlement, which is an illustration of the many pending challenges now that it has fallen under tougher government scrutiny, which, however, recovered on Wednesday as the costs of the other currencies had stabilized.
Bitcoin, which is the largest cryptocurrency in the world, increased by 1% in the past 24 hours after the Binance announcement. However, ether, which is the second largest digital currency, had increased by 4%.The stock for yet another large crypto exchange, Coinbase, also increased by more than 3% on Wednesday over the possible expectations that it might prove to be quite helpful for the troubles of Binance.
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