Market experts are convinced the settlement between Binance and the US government is a bullish event for Bitcoin and the altcoin industry with spot ETFs anticipated anytime soon.
The forced stepping down of former Binance Holdings Ltd CEO Changpeng Zhao which accompanied a $4.3 billion fine among other settlement agreements, has turned out to be a bullish signal for Bitcoin (BTC) and the entire altcoin industry, which was in the green on Thursday. According to the latest market data, the flagship crypto asset has gained about 2.6 percent to trade around $37,317 during the early Asian session on Thursday. Similarly, Ethereum (ETH), Uniswap (UNI), and Solana (SOL) led the altcoin market in gains in the past 24 hours. Consequently, the total crypto market cap has edged about 3.1 percent in the past 24 hours to around $1.48 trillion.
Binance $4.3B Settlement Unlock the Door for Spot Bitcoin ETF
The historical settlement between Binance and the US Department of Treasury has raised the confidence that investors perceive in the crypto market, more so in the flagship coin. According to Will Clemente, a co-founder at Reflexivity Research, top fund managers led by BlackRock Inc (NYSE: BLK) have pushed Binance out of the United States to clear the path for spot Bitcoin ETF. Moreover, more crypto trading volume will be recorded on US-based crypto exchanges, which will give the US SEC no reason not to approve the dozen spot ETFs.
Similar sentiments were echoed by Stijn Paumen, the Chief Executive Officer (CEO) at Helio, who added that the departure of Zhao from Binance’s top helm is the end of an era.
“I have a hard time thinking BlackRock didn’t have some type of informational edge around Binance when they initially filed. We just got the clarity of Binance and are now only seven weeks out from the ETF deadline for Ark. Feels like way too much of a coincidence,” Clemente noted.
Interestingly, one of the US SEC commissioners Hester M Peirce, highlighted on Wednesday that there is reason for the agency to stand in the way of the Bitcoin spot ETF. Furthermore, the lack of a regulated channel for Americans to invest in the crypto market has forced them into unregulated exchanges like FTX that have caused significant damage. Additionally, the demand for a better hedge for the rising inflation has pushed investors away from traditional investment products like treasury bonds.
💥BREAKING : The SEC Commissioner confirms:
— Crypto Rand (@crypto_rand) November 22, 2023
Closer Look at Price Action
Bitcoin price has presented traders with mixed signals in the past three weeks despite the high-impact news. From the daily time frame, Bitcoin price has been forming a possible reversal pattern through a head and shoulders (H&S) formation coupled with a falling divergence on the daily Relative Strength Index (RSI). Conversely, the altcoin has also been forming an ascending triangle through a bullish pennant pattern that signals a possible uptrend continuation toward $41k.