The past 24 hours have been quite challenging, and the dreaded scenario for crypto investors did not materialize. The data is extremely positive. It was expected that the potential lawsuit against Binance would cause greater devastation in the market than the FTX collapse. The main motivation for those targeting $12,000 prices for BTC was this lawsuit that came so blatantly.
Has Binance Sunk?
No, the latest reserve data suggests that the worst-case scenario did not occur. Investors were concerned that Binance would cause a major collapse similar to FTX. However, this did not happen. Moreover, after the $4.36 billion settlement agreement, Binance did not experience a bank run either. The data shows that during the initial shock period (first 24 hours), investors did not rush to withdraw their money from the exchange.
The reserve report that came in early November also confirmed the safeguarding of customer assets at over 100%. Following the agreement regarding the legal and criminal charges against Binance and CEO Changpeng Zhao, blockchain analysis firm Nansen reported that it did not lead to a “mass exodus of funds” from the crypto exchange.
Is Binance Safe?
According to the November 22 report by Nansen, approximately 24 hours after the US Department of Justice announced a $4.3 billion agreement with Binance, the exchange experienced a net outflow of $956 million in Ethereum. However, BTC’s net reserves exceeded $65 billion.
“Withdrawals continue, and we do not see a mass exodus of funds. In the past, Binance has seen higher volumes of outflows and negative net flows. We saw larger outflows following the SEC’s lawsuit against Binance in June 2023, after bankruptcy rumors in December 2022, and immediately after FTX.”
According to the report, Binance’s Tether assets decreased by $246 million in the past 24 hours, while XRP and TrueUSD (TUSD) assets remained stable. This situation has provided relief to crypto investors. The ongoing rise in prices for the past few hours could be a result of this.
After testing $37,861 a few minutes ago, the price of Bitcoin is finding buyers at $37,600.
