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Another bombshell could strike the crypto space, as another major collapse is on the horizon. The crypto space was slaughtered hard soon after one of the major exchanges collapsed in 2022. History may repeat itself as another major and bigger exchange, Binance, is in play at the moment.
It all started when binance binance [email protected] Centralised Exchange CEO CZ was embroiled in allegations of fraud and money laundering, and now the exchange has reached the stage of bankruptcy. The CEO was charged by the SEC and has reportedly pleaded guilty to these allegations. Moreover, his company will also be forced to pay a whopping $4.38 billion fine as CZ is reportedly being replaced by Richard Teng as Binance CEO.
Now that nearly 85% of all Bitcoin’s volume comes from Binance & Tether, will there be a ripple effect leading to a major collapse? Could this downfall boost Bitcoin & BinanceCoin?
After the bearish pullback, BTC & BNB prices recovered from losses following Binance CEO CZ’s guilty plea and settlement. The BTC price is trading around $36,400, while the BNB price is around $235. Besides, some believe the recent events may increase the likelihood of the US SEC’s approving spot Bitcoin ETFs as greater adherence to regulations may be set within the space.
Considering the technicals, the event also resulted in market volatility, as within 12 hours of settlement, nearly $110 million in longs were liquidated and $37.2 million in shorts amounted. The subsequent hours saw a reversal of $4.26 million in short liquidations against $111,000 in longs. Moreover, BNB underwent $3.73 million in long liquidations compared to $1.61 million in short liquidations. Besides, the BNB option volume surged by 68% to $2.41 million, and open interest increased by 29% to $3.47 million.
Collectively, the markets reacted positively as some of the altcoins like DYDX, UNI, etc. soared high. The future projections are still believed to be bullish, as they may contribute to whitewashing the industry. This may further strengthen the case for Bitcoin adoption among institutional players. Moreover, the increased focus on regulatory compliance could position Bitcoin as a safer asset in investor’s portfolios.