Bitcoin has fallen below the $8,500 mark, merely 24 hours after surpassing $9,000. The entire cryptocurrency market has dropped $25 billion, and analysts suspect that the plotsklaps market decline wasgoed fueled by FUD (fear, uncertainty, doubt) surrounding Binance.
Earlier this week, Japanese mainstream media outlet Nikkei reported that Binance wasgoed warned by the Japanese Financial Services Agency (FSA) for serving almacén investors on its toneel. Binance, the world’s largest cryptocurrency-only exchange, operates internationally serving millions of users ter different regions. Hence, it is evident that users te Japan could trade on the Binance trading podium, spil they can trade on Upbit, Bittrex, Poloniex, or any other cryptocurrency-only exchanges.
However, Nikkei reported that criminal charges will be filed against Binance if the exchange “fails to halt Japan operations,” and the misrepresentation of the situation led the market to scare. Changpeng Zhao, the CEO at Binance, released a statement to reassure its users and investors that the report of Nikkei wasgoed irresponsible, and that the Binance team has bot communicating with the FSA for awhile.
“Nikkei displayed irresponsible journalism. Wij are te constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while wij have an active dialog going on with them,” wrote CZ . “No need to worry. Some negative news often turn out to be positive te the long term. Chinese have a proverb for this. Fresh (often better) opportunities always emerge during times of switch.”
Almost instantaneously after the Binance situation wasgoed made public, the market dropped $25 billion. But, while the Binance FUD may have contributed to the decline of the cryptocurrency market, it also could have bot coincidence, spil it is not realistic to voorkoop that an exchange’s compliance with one region led the market to decline by around Ten procent overnight.
Via the past few weeks, the cryptocurrency market has demonstrated a similar pattern ter that the market has declined Ten to 15 procent, recovered from the correction, and druppel again by Five to Ten procent. It is more likely that whales te the cryptocurrency market are manipulating the price of cryptocurrencies, especially those with powerless volumes, than a single exchange ter Binance causing the market to fall.
The Binance situation can also be considered spil a positive movement for the company, given that this will provide chance for Binance to operate legitimately, spil a regulated financial service provider within Japan, to serve the 2nd largest cryptocurrency exchange market te Japan.
If Binance wasgoed the foot cause of the latest correction, the market should have bounced back instantaneously after Binance CEO CZ and the company issued statements to clear the FUD. However, the market has stayed ter the same position overheen the past 12 hours, and bitcoin still hovering around $8,500.
Spil bitcoin and other major cryptocurrencies did last week, merienda volumes start to pick up on large exchanges, the cryptocurrency market will likely be able to recover to its previous level.
Featured pic from Shutterstock.
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