Bitcoin Price Rises Despite Binance Investors Pulling Out
At a time when the world’s largest crypto exchange Binance, as well as its CEO, have been sued by the United States, Bitcoin seems to be rallying and pulling away from the panic which has beaten Binance investors.
Bitcoin Rises Despite Binance Crackdown
Bitcoin, that is largest cryptocurrency by market capitalizationrose for the second day in a row, gaining as much as 4.9% to close at $28,638 on Wednesday. It also hit the $29,000 mark yesterday. Over the past five days, Bitcoin has gained more than 4% despite falling slightly on Monday when reports of Binance being sued came out.
Other crypto tokens also rose, with XRP jumping around 4.4%, Cardano up 7% and Polygon up 3%. Ether was up less than 2%, according to a Bloomberg report.
But how do these two contrasting things happen at the same time? On one hand, Binance investors are panicking and have already withdrawn $1.6 billion this week after the world’s largest crypto exchange was sued by the US Commodity Futures Trading Commission (CFTC). On the other hand, the world’s largest cryptocurrency Bitcoin has been on the rise.
Bitcoin’s price rise in the wake of such a bombshell development around Binance drew surprise from many industry commentators. Some believe this is due to speculation that the lawsuit will only result in minor fines for the leading crypto exchange by transaction volume. The Crypto Fear and Greed Index — which aims to numerically present the current “feelings and sentiments” toward Bitcoin and other major cryptocurrencies — has risen steadily over the past month, despite wobbles in the global banking sector, according to the CoinTelegraph report.
Some traders have also argued that the recent price gains may have been due to large volume traders buying back in, which was more related to their buying strategies rather than fundamentals.
Also read: A 6000% peak? Meet This US-Based CEO Who Believes Bitcoin Price Will Reach Almost $1.5 Million By 2030
Binance sued by US Commodity Futures Trading Commission
Binance investors have withdrew $1.6 billion in cryptocurrency from the world’s largest crypto exchange since it was sued by the US CFTC on Monday, said blockchain data tracker Nansen, who as of Reuters.
US Commodity Futures Trading Commission (CFTC) sued Binance earlier this week, along with its CEO and former chief compliance officer, alleging they ran an “illegal” exchange and a “sham” compliance program. Since the lawsuit, Binance has seen $1.6 billion in total withdrawals and $852 million in the last 24 hours.
Now it remains to be seen if investors continue to panic and further withdraw their investments from Binance, or if the crypto exchange is able to put a pause on what could turn out to be the beginning of a collapse!
Also read: American man pays 10,000 Bitcoins for pizza
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