Negative News About Binance and Terra Cast Doubt on Bitcoin's Rise
Bitcoin (BTC)’s rise to $25,000 was a reason for celebration among the crypto community, but their joy was short-lived. Negative news has since emerged, casting doubt on the bulls’ prospects.
A recent Reuters report alleged that Binance, the world’s largest cryptocurrency exchange, had secretly transferred hundreds of millions of dollars from a Binance.US account at California-based Silvergate Bank to investment firm “Merit Peak”, a firm also controlled by Binance CEO Changpeng Zhao.This news sparked concerns about the misuse of customer funds and possible regulatory scrutiny.
In response to the allegations, Binance.US denied any wrongdoing, stating that they had never traded or lent out customer funds.
In the meantime, a more negative sentiment had already taken hold, and BTC lost \(1,000 in value, falling to \)23,500, its earlier level amid the post-CPI surge. The bears then took over the market, resulting in a 2.75% drop in the past 24 hours. BTC has since recovered to $23,800.
The wider action taken by the SEC, which has formally charged Do Kwon and Terraform Labs, is also a cause for concern among analysts, as it could pave the way for further attacks on stablecoins in the future.
Binance USD (BUSD) exchange outflows have surged to a 4-week high of \(15.3M, and the amount of BUSD supply on exchanges has decreased to its lowest point this month. As a result, BUSD's market cap has lost \)2.142B in the last four days.
ETH (-0.47%) has remained almost unchanged over the past 24 hours, with the Merge upgrade having no apparent direct economic impact. The Shanghai upgrade could affect the demand-supply balance in the ETH market. However, with only 31% of staked ETH currently profitable, selling pressure may not be too significant, as only holders who staked their ETH in Ethereum’s Beacon Chain over the past three years are making money.
On the other hand, Polygon (MATIC) has seen an increase of 7.46%, flipping Dogecoin (DOGE) to become the 9th biggest cryptocurrency by market cap. Despite this, the negative news surrounding Binance and stablecoins has overshadowed any gains in the market, and bears continue to dominate the sentiment.
Top altcoin gainers and losers
Filecoin FIL (+23.62%)
Klaytn KLAY (+16.59%)
MAGIC MAGIC (+13.39%)
Aptos APT (-9.38%)
Radix XRD (-8.27%)
Frax Share FXS (-6.00%)
NFT Market Map
As reported in our previous issue of Coin360 News, SewerPass (+747.61%) saw a strong upside in volume following a new round of sewer. It’s currently ranked no.1 on the NFT leaderboard by 24h traded volume.
Due to the broader market sentiment, 6 out of the top 10 collections recorded negative gains in volume. 10KTF Stockroom (+326.12%) was one of the few exceptions with a surge after its NTEC Event.
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.