The US SEC’s recent crackdown on Binance has significantly impacted the prices of leading cryptocurrencies, sending Bitcoin down by over 4% and ETH down 3%, while Binance’s BNB plunged nearly 8% in the last 24 hours. However, some savvy investors have recognized this tumultuous period as an opportunity to buy the dip, and the crypto exchange giant has received considerable support.
FalconX, the institutional crypto trading platform, withdrew 37 million USDC from Circle and deposited 29.5 million of those coins into Binance following the SEC’s lawsuit. On Whale Monitoring, it was observed that a crypto whale withdrew more than 703,871 USDC and 2.5 million USDT from decentralized finance platform Aave, purchasing around $3.35 million in ether at an average price of $1,810.
Meanwhile, the specialized crypto trading and market-making firm Cumberland withdrew 67.9 million USDC from Circle and deposited 67.1 million of those stablecoin to Coinbase. Blockchain investment firm FBG Capital deposited 44 million USDT into Binance, adding to the support received in the wake of the SEC crackdown.
Despite the upheaval within the industry, the crypto market’s period of low volatility has remained largely unscathed. Prices of leading cryptocurrencies have dropped across the board, but volatility has stayed low and implied options volatility has compressed. Such trends indicate a belief that market volatility will continue to be low.
Major crypto personalities have rallied behind Binance during the SEC lawsuit. BitMEX co-founder Arthur Hayes tweeted that the market drop was due to some “Binance FUD” and expressed optimism for the future. Changpeng Zhao also polled his followers, asking who protected investors better, Binance or the SEC? The majority of respondents sided with Binance.
Being the world’s largest crypto exchange by trading volume, Binance has come under investigation from various regulatory bodies in the US, including the CFTC, SEC, IRS, and even the Department of Justice. Despite the challenges, market insiders and crypto enthusiasts seem to be holding strong, with many showing support for the embattled exchange.
As with any market situation, it’s essential for investors to conduct thorough research before committing to any investment in cryptocurrencies. The recent market activity and Binance crackdown underscore the need for diligent analysis and risk management in the face of an ever-changing landscape. After all, the market’s direction can be influenced by personal opinions and conditions beyond one’s control, so adequate preparation and a realistic outlook remain crucial for success in the world of crypto investing.
Source: Coingape
