Bitcoin price dropped over 3% to $38,500 on the recent negative news from Binance but any other reason?
Bitcoin price, the king crypto, has dropped over 3%, to $ 38,500 local low because of the recent negative news for the crypto industry
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price dips to $38,500, any other reason?
As AZCoin News reported, the Securities Commission of Malaysia has served a public reprimand against Binance, calling for the exchange and all of its entities to cease operations in the country. Furthermore, Binance plans to stop providing crypto-based futures and derivatives trading for all of its European customers. After that news, the Bitcoin price has dropped over 3%.
The first countries where clients will be unable to set up new trading accounts for futures and derivatives with Binance will be Germany, Italy, and the Netherlands.
It seems that recently, Binance has constantly been experiencing bad luck. Binance was so “touched” by authorities in many countries that CZ announced that it was ready to resign. But this information has been corrected. Besides, Binance is under scrutiny in India regarding its role in the money laundering activities of Chinese betting apps on the WazirX exchange owned by Binance, the leading exchange in the country.
Binance outflow shows that 30,000 BTC are presumed to be distributed to Binance branches in different countries or other exchanges’ hot wallets.
The current BTC price move, however, cannot be entirely blamed on Binance. First of all, the daily Bitcoin chart shows us that growth momentum is currently slowing down after an eight-day increase. The latest major Bitcoin move took place on July 27 with an 8.7% growth.
At the same time, the chart suggests that we see a progressive decrease in volumes. Trading volume on Bitcoin exchanges has returned to the values of July 26.
Besides decreased volumes, we currently see a slight decrease in wallet activity data, suggesting that Bitcoin holders and traders are currently not moving their funds.
Meanwhile, data from CryptoQuant shows that on-chain and technical sell signals based on whale finding local tops in BTC. After analyzing the third-largest BTC wallet’s activity, they found that multiple on-chain and technical sell signals flashing while BTC found local tops. The red lines match the whale’s inflow into Coinbase to sell.
This is probably not a good time for Binance, but it also affects the price of BTC, which has only recovered in recent days.
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