Binance has resolved a series of issues and markets breathed a sigh of relief when Bitcoin hit its yearly high. However, unresolved problems continue to cause concern among investors. The days when the cryptocurrency was completely isolated from problems are behind us, and seeing parabolic rallies is becoming increasingly difficult due to the risks that could lead to major losses.
Last week, the US markets were shaken and Binance reached a settlement to avoid further insults from innocent investors. As a result, a billion-dollar fine was imposed and a clean slate seemed to have been opened. However, old problems are not completely closed. The intense investigation by the SEC into Binance US and former CEO Changpeng Zhao continues to worry crypto investors.
The lawsuit filed by the SEC against Kraken exchange and the statements by the US Treasury Deputy Secretary regarding crypto regulations and sanctions mean tighter controls for exchanges. So far, companies have not placed enough importance on legal compliance for their growth in a gray area without unique global laws.
All of these are leading crypto investors to wonder if a bigger wave of regulatory pressure is on the horizon. In addition, the Justice Department’s suggestive statements about investigations into stablecoins are causing confusion.
Recent Glassnode data shows that miners are inclined to sell. Due to the halving, miners’ profits will weaken and they need strong balances to be prepared for market shocks during this period. We remember the situation of exchanges that were on the brink of bankruptcy during the bear market.
On the other hand, the decreasing inflation and today’s positive PCE data indicate that markets need to maintain their positivity towards the end of the year. Factors such as ETF approval, halving, interest rate cuts, increased regulatory transparency, resolution of crypto cases, increased institutional demand, and overall market sensitivity are set to potentially impact the year 2024.