Binance Coin (BNB) experienced a significant price breakout, reaching a 5-month high at $271.90. This surge in price came amidst reporting from the Wall Street Journal, which highlighted the United States Department of Justice’s plan to announce a $4.3 billion dollar settlement with Binance to end its case. Additionally, the report stated that Binance founder Changpeng “CZ” Zhao has agreed to step down as CEO of the crypto exchange.
The exact details of the settlement are set to be announced at a press conference on November 21 at 3 pm ET. However, the crypto market has already begun reacting to the news, with market participants perceiving the end of the Binance legal saga as a positive outcome with potential bullish ramifications for the crypto market as a whole.
Historically, the crypto market has shown negative reactions to enforcement actions and the threat of new regulations. However, data from Coinglass shows that BNB volumes, open interest, and options volume have surged over the past 24 hours. This suggests that market participants are viewing the potential settlement as a positive development for Binance and the broader crypto market.
While the price of BNB did reach a 5-month high at $271.90 on November 21, the move was accompanied by a surge in liquidations. This indicates that there was a significant amount of profit-taking and selling pressure following the price spike.
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As of the time of writing, BNB’s price is retracing a majority of its intra-day gains. This retracement may be a sign that the price action reflected the “buy the rumor and sell on the news” strategy, which is a common occurrence in the crypto sector. This strategy involves traders buying an asset on the anticipation of positive news, and then selling once the news is officially announced.
It’s important to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. It is important to carefully consider the potential risks and rewards associated with trading in the crypto market, especially in light of significant news events such as the potential settlement involving Binance.
