Pressure from the US SEC Continues
BNB is the native token of the Binance exchange, initially launched on the Ethereum blockchain and later migrated to the Binance Smart Chain, now known as BNB Chain. BNB serves multiple functions within the Binance ecosystem and has been integrated into numerous applications and services.
The world’s largest cryptocurrency exchange, Binance, was sued by the U.S. Securities and Exchange Commission (SEC) on Tuesday for allegedly violating several securities laws. Both Binance and its CEO Changpeng Zhao face 13 charges, accused of running an unregistered securities exchange and “enriching themselves while putting investors’ assets at risk.”
In addition, Binance has faced multiple investigations by the SEC this year, and CEO Zhao was hit with a $1 billion lawsuit two months ago for allegedly paying celebrities to promote unregistered securities.
The SEC has taken an increasingly aggressive approach towards the cryptocurrency sector, aiming to bring crypto companies under the same regulatory framework as traditional securities, treating cryptocurrencies similarly to stocks and bonds.
Over $750 Billion Withdrawn from Binance
Although the outcome of the lawsuit remains uncertain, the negative news has spooked investors, causing a massive sell-off. BNB dropped nearly 10% in a single day, and the total market cap of crypto lost around $50 billion during the same period.
In the hours following the announcement, over $750 billion was withdrawn from Binance. Despite this, CEO Changpeng Zhao assured that the platform remains stable. The market is still processing the news, and more volatility is expected, making it difficult to predict the short-term price of BNB with accuracy.
It’s also important to note a significant decline in whale transactions. When large investors (whales) reduce their trading activity, especially with transactions over $100,000, it often signals a lack of confidence in the short-term price prospects of the asset.
Whales Redirecting Funds
If whales continue to move their funds to other assets, BNB’s price could face further declines in the coming weeks.
Typically, during volatile periods, many investors panic and sell their assets. Analysts believe BNB may struggle to hold above its current price levels.
Additionally, fears about regional banking instability, hawkish remarks from the Fed, and ongoing debates over the U.S. debt ceiling will continue to influence the financial markets. Given the uncertainty, many investors may prefer to adopt a more cautious approach to investments.
Technical Analysis of BNB
BNB has dropped from $305.2 to $253.9 since June 05, 2023, and the current price is $260. It might struggle to stay above the $250 mark in the coming days. A break below this level could signal a potential test of the $230 price level.
Key Support and Resistance Levels for BNB
Factors Favoring BNB’s Price Increase
BNB’s potential for a price increase seems limited in the near term. However, if the price rises above $280, the next resistance target could be $300. As the macroeconomic situation remains uncertain and the pressure from the SEC persists, a defensive investment approach is recommended for the time being.
Signals Pointing to BNB’s Decline
BNB is currently priced above $260, but if it falls below the $250 level, a drop to $230 could be likely. The volatile nature of cryptocurrencies could trigger further sell-offs if negative news related to Binance or the SEC emerges.
The SEC lawsuit against Binance and its CEO “CZ” continues to hang over the price of BNB, and it remains unclear what the legal outcome will be.
Insikter från analytiker och experter
The SEC filed charges against Binance and CEO Changpeng Zhao this week, accusing the exchange of engaging in multiple unregistered securities offerings and operating as an unregistered broker, dealer, and clearing agency. The SEC also alleges that Binance misled investors about the separation between Binance and Binance.US.
Following the announcement, more than $750 billion was withdrawn from Binance, contributing to a sharp sell-off where BNB lost nearly 10% of its value in one day. However, Zhao has stated that the platform remains secure, and transactions continue normally on Binance.US.
Will the US Fall Behind?
The cryptocurrency market remains under pressure, with Bitcoin’s price dropping below $26,000. Analysts suggest that BNB may struggle to maintain its current price levels. Binance, being the largest exchange, is significantly impacted by negative news surrounding its operations.
Markus Thielsen, head of research at Matrixport, stated that the SEC’s actions could severely harm the crypto industry and potentially exclude U.S. users from participating in cryptocurrency innovation. However, at CryptoChipy, we believe that this is a temporary obstacle, and once the European Union implements MiCA regulations next year, the U.S. will need to act to stay competitive.
Villkor: Cryptocurrency investments are highly volatile and not suitable for everyone. Never invest money that you can’t afford to lose. The information provided is for educational purposes only and should not be considered as investment or financial advice.
