Bitcoin, Ethereum, Dogecoin Mixed Among Possible Troubles For Binance: Analyst Says Crypto Traders Are More Worried About Insolvency Risk – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Bitcoin and Ethereum traded higher on Monday night as the global cryptocurrency market capitalization rose 0.1% to $850.9 billion at 7:21 PM EST.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 1% | 1.1% | $17,194.35 |
| Ethereum ETH/USD | 1.2% | 0.9% | $1,274.06 |
| Dogecoin DOGE/USD | -1.5% | -10.45% | $0.09 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Stacks (STX) | +5.9% | $0.30 |
| The Trust Wallet token (TWT) | +6.7% | $58.67 |
| Bitcoin SV (BSV) | +8.4% | $47.47 |
See also: Four Best Binance Alternatives for 2022
Why it matters: The trading day was dominated by regulatory news on Monday. USA Ministry of Justice reportedly considering criminal charges against cryptocurrency exchange Binance and its CEO, Changpeng Zhao.
The alleged offenses are related to the 2018 investigation into Binance’s anti-money laundering compliance and fines.
Separately, Sam Bankman-Friedthe founder of beleaguered cryptocurrency exchange FTX, was arrested in the Bahamas on Monday after local authorities received formal notification from the United States.
The United States is likely to pursue Bankman-Fried’s extradition, according to Bahamian authorities.
“Binance is the world’s largest crypto exchange and traders will be paying close attention to the spotlight on them. DOJ prosecutors reportedly have evidence to warrant charges for possible money laundering and criminal sanctions violations,” said Edward Moyasenior market analyst at OANDA.
“Crypto traders are more concerned about insolvency risk, and right now these allegations of AML violations and sanctions seem like they might just lead to fines and not be the domino that triggers a mass exodus of this exchange,” Moya said in a note, seen by Benzinga .
Binance’s net outflow touched $902 million intraday on Monday, surpassing all other centralized exchanges in the period, CoinDesk reported, citing Nansen data.
Meanwhile, risk assets strengthened as investors anticipated a soft inflation report. Financial Secretary Janey Yellen recently said that inflation should continue to decline beyond 2023 unless there are unexpected shocks to the economy.
The S&P 500 and Nasdaq closed 1.4% and 1.3% higher, respectively, on Monday. US stock futures were seen trading flat at the time of writing.
Bitcoin “coming into resistance now, but a good bounce and therefore quite decent daily lights across the markets. Tomorrow and Wednesday there will be a fire,” said Michael van de Poppe.
“It looks like the markets want to go up,” the Amsterdam-based cryptocurrency trader said.
Justin Bennett said $12,000 levels for Bitcoin are “still in the cards” but the question is “how many shorts do [Bitcoin] shake out first?
Sentiment, a market intelligence platform, said in a note that the dollar index, a measure of the dollar’s strength against six other currencies, is approaching an “interesting zone” this week for a bounce that “would not be good for risk assets.” The dollar index was up 0.2% at 105 at the time of writing.
USD Index Chart by Sentiment
“This week’s macro events look set to be one of the most exciting of the year,” Santiment said, noting that the week is “packed” with key events such as consumer price inflation (CPI), Federal Open Market Committee (FOMC) meeting, and the Purchasing Manager’s Index (PMI) to “end the year with a bang.”
Read next: Crypto Analyst Predicts Bitcoin Heading To This Level And Will “Probably Bottom Out There Soon”
