Binance Settlement and ETF Prospects Boost Confidence in the Cryptocurrency Market
Earlier today, the price of Bitcoin surged to $38,437 on the Bitstamp exchange, reaching its highest level since May 2022. Binance, the world’s largest cryptocurrency exchange, is credited as a key factor in this recent price surge. Despite facing legal challenges, including its founder Changpeng Zhao admitting guilt to charges of violating US anti-money laundering laws and stepping down, Binance agreed to pay a massive fine of $4.3 billion.
Mike Novogratz, CEO of Galaxy Digital, previously predicted that the settlement in this case would be “extremely bullish” for Bitcoin, and it seems his predictions are coming true as the market has positively responded to the decision. Additionally, there is anticipation surrounding the approval of “Bitcoin Futures” exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC), which is contributing to the bullish sentiment.
The SEC has a final deadline of January 10th to make a decision on several pending applications for these ETFs. If approved, these ETFs are expected to provide a more cost-effective way for investors to gain exposure to Bitcoin.
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Another crucial factor impacting Bitcoin’s price is the recent surge in market liquidations. Coinglass reported a significant increase in the liquidation of both long and short positions across various time frames, with a total of $80.29 million in liquidations in the past 24 hours. This includes $26.79 million in long positions and $53.49 million in short positions. Such liquidations often contribute to increased market volatility, affecting the dynamics of Bitcoin prices.
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