Loading...

Bitcoin makes leap above $37K amid spot ETF approval rumors

Bitcoin

Most read

Loading Most Ready posts..

TL;DR

  • Bitcoin has made a positive leap in the market as it crosses above the $37,000 mark.
  • Binance resolution fuels spot ETF approval rumors.

In the recent dynamics of the cryptocurrency market, this week witnessed a positive turn as Bitcoin (BTC) surpassed the $37,400 mark and continued to trend upward despite the departure of a significant figure in the crypto space. The market initially faced turbulence on Monday due to leaked information suggesting a potential substantial settlement of U.S. criminal charges against Binance, the world’s largest cryptocurrency exchange.

Bitcoin inches closer to $37,500 after a slight dip

The confirmation on Tuesday of a $4.3 billion fine and a guilty plea from Binance’s founder and CEO, Changpeng “CZ” Zhao, who also agreed to step down from his leadership role, intensified market fluctuations. This led to a temporary dip in Bitcoin prices, falling below $36,000 on that particular evening. However, markets have since exhibited resilience, with Bitcoin showing a 1.5% increase over the past 24 hours, approaching the $37,400 mark. At the beginning of the week, Bitcoin started at around $37,000.

The broader market has also seen a positive trend, gaining more than 2% over the past 24 hours. Ether (ETH) led the way with a 5% increase, accompanied by 6% gains for Solana (SOL) and Chainlink (LINK). Looking beyond the immediate headlines, some observers have pointed out that the resolution of the Binance case might pave the way for the U.S. Securities and Exchange Commission (SEC) to finally approve a spot Bitcoin exchange-traded fund (ETF).

The perceived reduction of concerns related to overseas manipulation of Bitcoin prices, with Binance facing regulatory consequences and CZ stepping down, could influence the SEC’s stance. In response to these developments, crypto services provider Matrixport expressed optimism, stating, “With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow.” Economist Alex Kruger echoed this sentiment, emphasizing the positive implications of the Binance settlement on market dynamics.

Binance resolution fuels spot ETF approval rumors

Kruger also noted that with the uncertainty surrounding Binance out of the way, activities will now be monitored by an independent compliance monitor. He also noted that waiting for the market to agree with him is bullish. The Binance case has been closely watched for its potential ramifications on the regulatory landscape for cryptocurrencies. The massive fine and leadership changes signal a heightened scrutiny of the industry, prompting speculation about the potential ripple effects on other crypto entities.

Despite the initial market shock, the subsequent rebound suggests a degree of resilience within the crypto space. Bitcoin’s ability to recover and post gains amid the uncertainty indicates a certain level of maturity and adaptability in the market. The positive movement in other major cryptocurrencies, such as Ether, Solana, and Chainlink, further reinforces this resilience. The focus is now shifting towards regulatory developments, particularly the SEC’s stance on a spot Bitcoin ETF.

The resolution of the Binance case could be seen as a step towards establishing clearer regulatory frameworks, potentially instilling greater confidence among institutional investors and traditional financial entities. As the industry navigates through these regulatory challenges, market participants are keenly observing how the Binance settlement sets a precedent and influences the regulatory landscape. The appointment of an independent compliance monitor for Binance could serve as a model for other crypto exchanges to enhance transparency and compliance with regulatory requirements.

The cryptocurrency market has experienced a volatile week, initially triggered by regulatory concerns surrounding Binance. However, the subsequent positive momentum suggests resilience in the market. The resolution of the Binance case is viewed by some as a potential catalyst for the approval of a spot Bitcoin ETF by the SEC. As the industry adapts to evolving regulatory dynamics, the coming weeks may provide further clarity on the path forward for cryptocurrencies in the financial landscape.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

Stay on top of crypto news, get daily updates in your inbox

Related News

Furious Nigeria asks Binance CEO to show up as soon as possible
Cryptopolitan
Subscribe to CryptoPolitan