Why Is Bitcoin Rising Despite Binance Investors Pulling Out $1.6 Billion From The Sued Crypto Exchange?
At a time when world's largest crypto exchange Binance, as well as its CEO, have been sued by the US, Bitcoin seems to be on the surge and defy panic that has struck Binance investors.
At a time when the world's largest crypto exchange Binance, as well as its CEO, have been sued by the US, Bitcoin seems to be on the surge and shrugging off the panic that has struck Binance investors.
Bitcoin Rising Despite Binance Crackdown
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Bitcoin, which is the largest cryptocurrency by market value, rose for a 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. In the last five days, Bitcoin has been up more than 4% despite falling a bit on Monday when the reports of Binance getting sued came out.
Other crypto tokens also rallied, with XRP jumping about 4.4%, Cardano increasing 7% and Polygon rising 3%. Ether was up less than 2%, as per a Bloomberg report.
But how are these two contrasting things happening at the same time? On one hand, Binance investors are panicking and have already pulled out $1.6 billion in withdrawals this week after the world's largest crypto exchange was sued by 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 surrounding Binance drew surprise from many industry commentators. Some believe this is due to speculation the lawsuit will only result in minor fines for the leading crypto exchange by transaction volume. The Crypto Fear and Greed Index ¡ª which aims to numerically present the current ¡°emotions and sentiments¡± toward Bitcoin and other large cryptocurrencies ¡ª has been steadily increasing over the last month, despite wobbles in the global banking sector, as per CoinTelegraph report.
Some traders have also argued that the recent price rebounds may have been due to large-volume traders buying back in, which was more related to their buying strategies rather than fundamentals.
Binance Sued By US Commodity Futures Trading Commission
reuters
Binance investors have withdrawn $1.6 billion of cryptocurrency from the world's largest crypto exchange since it was sued by the U.S. CFTC on Monday, blockchain data tracker Nansen said, as per Reuters.
The U.S. Commodity Futures Trading Commission (CFTC) sued Binance earlier this week, along with its CEO and former top compliance executive, alleging that they were operating an "illegal" exchange and a "sham" compliance program. Since the lawsuit, Binance has seen $1.6 billion of overall withdrawals and $852 million in the last 24 hours.
Now it remains to be seen whether investors continue to panic and further withdraw their investments from Binance, or the crypto exchange is able to put a pause on what can turn out to be the beginning of a collapse!
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