Bitcoin is trading above $38,500 as it is written and is off to a good start in December. The good news for investors is the increasing file updates indicating the approaching approval of the ETF. Additionally, the total market value of the crypto market is above $50 billion.
The correct interpretation of the Binance incident is of great importance for investors. The resolution of the Binance issue, except for the SEC regulatory condition, is of great importance in the United States. This situation prevented the crypto community from paying the price of erasing a historical figure like CZ.
Bitcoin made its best monthly close in the last 19 months and rose to $38,999 in the last 24 hours. Mike Novogratz, the CEO of Galaxy Digital, one of the leading names in the crypto market, believes that the effects of the Binance incident can last for a long time.
The current optimism is said to be supported by the expectation of ETF approval and the Binance agreement. Reserve data shows that the market has correctly interpreted the Binance incident and the rise may not be temporary.
Binance’s Bitcoin reserves have dropped by 17% from the all-time high, but the exchange has started to see BTC inflows again. Since the initial crash, Binance’s BTC balance has increased by 1%. On the other hand, FTX’s BTC reserves have continuously and rapidly decreased amid bankruptcy. Binance is seen to have taken necessary precautions to prevent a possible bank run by providing information about the agreement to VIP clients in advance.
Binance founder CZ has been stating for a long time that he can step down from the CEO position if necessary to solve the problems. The steps taken regarding the reserve proof have also been a way to protect users. However, not everything is rosy, as Bitcoin reserves are at their lowest level since March 15th, and those wondering whether the rise will continue should also follow Binance’s reserves.