Binance’s Bitcoin, Ethereum, Stablecoin’s Netflow Reveal Stability Despite US CFTC Suit
The world’s largest crypto exchange Binance and CEO “CZ” were accused of violating crypto and derivatives trading rules in a lawsuit filed by the US Commodity Futures Trading Commission (CFTC). This increased the levels of FUD regarding Binance amid increased scrutiny and crypto-regulatory violations following the collapse of FTX.
On-chain computer firm CryptoQuant in a report shared an analysis of Binance’s health after the US CFTC lawsuit. A comparative analysis of Bitcoin, Ethereum and stablecoin net flows and reserves under regulatory FUD following the FTX collapse, BUSD crash and the CFTC lawsuit was considered.
During the regulatory FUD following the December FTX crisis, Binance recorded the highest net outflow of 40,353 BTC on December 12th. The exchange also recorded a total net outflow of 78,744 BTC between December 10-16.
Meanwhile, Binance witnessed the largest daily net outflow of 5,027 BTC on February 12 during the BUSD FUD and a daily net outflow of 4,505 BTC following the CFTC lawsuit. Thus, the recent Bitcoin outflow is relatively low compared to the previous events.
Ethereum net outflows data is similar to Bitcoin outflows, with total net outflows continuing to decline. During the regulatory FUD, Binance recorded the highest daily net outflow of 278k ETH on December 12th. The daily net outflow of 79,706 ETH and 76,146 ETH occurred after the BUSD FUD and the CFTC lawsuit respectively. CryptoQuant noted net flow-to-reserve ratio indicates that net flows have remained within historical ranges.
As for stablecoins, chain data reveals net outflows of $871 million, a daily high outflow of $671 million in February. However, Binance recorded total net outflows of $1 billion since the CFTC lawsuit.
Binance’s Bitcoin (BTC) and Ethereum (ETH) reserves remained at “healthy” levels, with reserves rising from December levels. BTC reserves increased from 509k in December 2022 to 581k currently. ETH reserves increased to 4.487 million from 4.420 million in December. Furthermore, Exchange to Exchange Flows data shows that investors still consider Binance a reliable and desirable exchange.
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Bitcoin price rises above $29,000 amid CFTC lawsuit against Binance
Bitcoin price today briefly jumped above $29,000 to reach a high of $29,159. Currently, BTC price is trading at $28,570 amid positive sentiment in the market. Investors believe that Bitcoin will rise above $30,000 to quickly move to $35,000 soon.
Ethereum price is also trading above $1,800 following the broader rally in the crypto market on Wednesday.
also read: Bitcoin price jumps 4% defies consolidation, key support and resistance levels
