Both currencies are still decreasing on the daily chart, with one going down by 2. 6% and the other by 9. 34%
Bitcoin (BTC) and Binance Coin (BNB) have recovered from the losses they had yesterday. This happened after Binance, a company that trades cryptocurrency, agreed to pay over $4 billion in fines to the United States government. In the same way, Binance CEO Changpeng Zhao (CZ) also asked for a deal on the same day, making it more likely that a Bitcoin exchange-traded fund (ETF) will be approved in the US.
At the time of this report, CoinMarketCap data indicated that the price of BTC was about $36,430. It had dropped almost 5% to $35,700 on Tuesday. BNB’s price was at $235, which is higher than the low price of $223 it reached overnight. Both currencies are still dropping in value on the daily chart, with one decreasing by 2. 6% and the other by 9. 34%
Traders think that Binance’s problems are connected to the approval of a Bitcoin ETF.
Both CZ and the company were found to have broken the law by using American customers to make trades and make money illegally. But there might be something good to come out of the situation.
Traders and big companies like Matrixport think that CZ’s problems could be what the SEC needs to approve bitcoin ETFs. Matrixport said in a message on Telegram:
“This agreement could mean that the chances of a Bitcoin ETF being approved are now 100% because the industry will have to follow the same rules as traditional finance companies. ”
Matrixport also said that what happened on Tuesday will make more big companies and investors start using Bitcoin. The government is working hard to make the industry safer. This is making institutions more interested in Bitcoin because they see it as a safe investment.
However, despite the possible advantages, the events on Tuesday may have made it difficult for some traders to continue. After people heard about Binance and CZ, the price of Bitcoin changed a lot. This caused about $110 million in long Bitcoin positions to be sold for less than they were worth, and $37. 2 million in short positions to not make as much money as expected. Coinglass data shows that this happened just 12 hours after the settlement news.
Similarly, BNB had $3. 73 million of long positions closed and $1. 61 million of short positions closed. The volume is low because it is not traded as much as Bitcoin. People prefer to stake it instead.
CZ admitted to breaking the law and might go to jail. Even though he’s not the CEO anymore, his lawyers think he won’t be sentenced for at least 6 months. The small businessman said he won’t fight the sentence if it’s not longer than 18 months.
