Volatile crypto markets turned higher this week on Wednesday afternoon, with Bitcoin (BTC) breaking $37,400 and now higher this week, even as another crypto major exited the scene.
Crypto markets were initially shocked on Monday by news that a possible comprehensive settlement in the US criminal cases against Binance, the world’s largest crypto exchange, could be leaked. Confirmation of the $4.3 billion penalty on Tuesday, as well as an admission of guilt by founder and CEO Changpeng “CZ” Zhao – who also agreed to resign from the company – further rattled markets, leaving Bitcoin lower that evening temporarily falling below $36,000.
However, markets have since recovered, with Bitcoin up about 1.5% in the last 24 hours to just under $37,400, after starting the week at around $37,000.
Headlines aside, several observers have noted that the Binance agreement may have essentially cleared the way for final approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). They said Binance’s castration and CZ’s exit may have allayed the agency’s concerns about Bitcoin price manipulation abroad.
“With this plea deal, expectations for a spot Bitcoin ETF may have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow,” wrote crypto services provider Matrixport.
“Binance’s uncertainty has been removed and its activities are now monitored by an independent compliance monitor.” said economist Alex Kruger. “I’m waiting for the market to agree with me that this is indeed bullish.”
Originally posted 2023-11-22 22:44:56.