Why is Binance’s BNB and Bitcoin up today? Bulls be ready


  • Trading data reveal that BNB jumped 6% to $262 in around 30 minutes after Bloomberg reported on Nov. 20 that Binance was discussing an agreement to settle a DOJ investigation into potential sanctions violations, money laundering, and fraud.
  • This market reaction indicates that the DOJ decision does not represent a systemic risk to the entire industry.
  • Bitcoin has joined BNB in the market recovery. Today, BTC has a market cap of $731 billion, reflecting a 49.8% domination. Also, the global crypto market cap is $1.47 trillion today, representing a 79.06% increase over a year ago. 

Binance‘s native crypto, BNB, rose 6.55% to $ 262.73 on reports of prospective settlement discussions between Binance Holdings Ltd. and the US Justice Department. This increase in value, which represents a three-month high, shows market optimism as Binance potentially gets closer to addressing long-standing regulatory issues. 

BNB hits a 90-day high

According to Bloomberg, Binance could pay $4 billion by the end of the month to settle multiple criminal charges in the United States. However, the settlement reportedly allows the exchange to continue functioning.

Second, Binance would be required to publish an extensive report admitting areas where it breached the law. Third, a monitoring process would be put in place to ensure Binance’s future compliance with laws and regulations, and the company would be obligated to use it.

While the fine is one of the largest ever imposed by the US government on a company, traders and analysts are relieved for the market as a whole. This market reaction indicates that the DOJ ruling does not represent a systemic risk to the entire industry.

Four hours after reaching a peak of $262, BNB fell to $252. However, it surged again to $266 hours later, marking its highest level since June 7. This surge occurred in the wake of a lawsuit filed by the Securities and Exchange Commission against Binance and its CEO, Changpeng “CZ” Zhao, who was accused of violating multiple securities laws.

The 24-hour price increase for the Binance-issued token is the greatest among the 75 largest crypto coins by market cap. BNB is the fourth largest token by market capitalization at over $40 billion at the time of writing.

In spite of the recent surge in price, BNB has gained 6.5% year-to-date but is down 61.4% from its all-time high of $686 on May 10, 2021.

In one possible settlement, Binance would be required to pay a ten-figure fine and remain operational in the United States under specific conditions. Bloomberg reported that a prospective agreement announcement could be made by the end of the month at the latest.

The fine will be one of the most substantial fines ever levied in a criminal crypto case if Binance complies.

Bitcoin joins the BNB market tide

As a result, this news not only boosted the value of BNB but it also boosted the value of Bitcoin, which rose 2.1% to $37,768. At the time of writing, the price of Bitcoin is $37,402.17.

The increased trade volume, which indicates substantial market activity and confidence in the BNB’s upward trajectory, strengthens a market recovery. If the trade volume continues to rise, BNB has more upside potential.

According to CoinGecko, the global crypto market cap is $1.47 trillion today, a 0.06% increase over the last 24 hours and a 79.06% increase over a year ago. Bitcoin (BTC) has a market cap of $731 billion as of today, reflecting a 49.8% domination. Meanwhile, the market cap of stablecoins is $128 billion, accounting for 8.75% of the total crypto market worth.

Additionally, average daily transaction fees on Bitcoin have reversed with Ethereum in the wake of a Bitcoin network mania involving Ordinals. As of November 20th, Bitcoin incurred an average daily transaction fee of $10.34, whereas Ethereum recorded an average transaction fee of $8.43.

Since October 24th, more than 6 million Ordinal assets have been generated, leading to the redistribution of over 800 BTC in fees, equivalent to $30 million, to the network.

Ordinals inscription activity increased further on November 7, when ORDI, the second largest BRC-20 token by market cap, was listed on Binance. Traders engaged in a greater surge of BRC-20 purchasing activity in response to the listing; the price of the ORDI token increased by approximately 50% on the same day.

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 decision.

Share link:

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

Most read

Loading Most Read articles...

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

Related News

Subscribe to CryptoPolitan