In a positive turn of events for crypto investors, the second half of 2023 has brought a series of favorable developments. The entry of BlackRock into the crypto market, followed by other trillion-dollar companies, set the stage. Victories for XRP Coin, progress on ETH ETF applications, and the resolution of the long-discussed Binance case have allayed fears of a potential crypto crash.
The Binance lawsuit, a topic of months-long speculation, was handled judiciously by the US, preventing significant losses for global investors. Averting the possibility of a major bank run, the US government's approach included an indictment against Binance and its founder, Changpeng Zhao, in Washington on November 14th. The unsealing of documents on November 21st revealed that, following admission of charges, CZ stepped down from Binance management as part of a settlement that involved a $4.36 billion fine.
With Binance now on a compliant path, an appointed auditor will continuously report the exchange's activities to the US government for three years. This marks a new era, free from speculation, investor opposition, and the risk of KYC violations. Moreover, this development puts pressure on the SEC for the approval of a spot Bitcoin ETF. The SEC had previously cited concerns about "excessive market share on unregulated exchanges" in rejections. With Binance, the volume king, seemingly tamed according to the US, the path may now be clearer for ETF approval.
Bitcoin futures contracts, which should ideally trade with a 5% premium, currently reflect an 8% premium, indicating robust optimism regarding ETF approval. While slightly lower than the 11.5% observed in mid-November, this level underscores positive sentiments in the market.
As of the latest update, Bitcoin is priced at $37,500. If Binance avoids any surprise bank runs that could potentially drag the market into chaos, the outlook for 2024 appears to be shaping up for a genuine bull market.
No comments:
Post a Comment