Bitcoin market cap is expected to drop following the recent Binance and DOJ $4 billion settlement and change of CEO.
However, the Bitcoin price has been predicted to set a new all-time high after the halving event. 

The Bitcoin (BTC) market has slowed down following an unexpected rally that took most of the assets to their yearly highs. Currently, the market is mixed with opposing emotions as the Fear and Greed Index falls to 66 from 71.

The fall has been linked to the recent report that Binance founder, Changpeng Zhao has resigned as the CEO, unveiling Richard Teng as his successor. The exchange also reached a $4.3 billion settlement agreement with the US Justice Department. Prior to that, CZ had pleaded guilty to multiple counts including failing to maintain an effective anti-money laundering (AML) program. 

This was explained by Secretary of the Treasury Janet L. Yellen. 

Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform. Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences. 

More on the Bitcoin market 

On top of these concerns, 108k BTC options of a notional value of $4.05 billion would expire on November 24, with a put call ratio of 0.83. $33,000 is reported to be the maximum pain point, indicating a potential surge in the Bitcoin price. 

For Ethereum, “1.2 million ETH options of the notional value of $2.48 billion are about to expire with a Put Call Ratio of 0.72.”

While the market is averagely bullish, some investors expect the Bitcoin price to record a significant drop in market cap due to the reshuffling of trade. They believe that Binance’s change of CEO could create volatility in the market. In addition to this, the upcoming Christmas and annual delivery could send the trading activities to a lower side. However, the Bitcoin halving event expected to take place next year is predicted to trigger the Bitcoin price to a new all-time high. 

Rekt Capital Tells Investors to Buy the Deep Retraces 

According to Rekt Capital, investors should be ready to accumulate when there is any deeper retrace. 

Bitcoin is ~180 days away from its Bitcoin Halving. At this point in the cycle, Bitcoin retraced -25% in 2015/2016 and -38% in 2019. History suggests a retrace is possible. A -30% retrace from current prices would see Bitcoin drop to ~$ 20,000BTC #Crypto #Bitcoin.

In the last three months, Bitcoin has surged by 45 percent, trading at $37,959.65 after adding $11,897.41 to the previous price. In the last 24 hours, Bitcoin has surged by 1.29 percent and also increased by 4 percent in the last week. 

Ethereum is also trading at $2,105.08, after surging by 27 percent in the last three months to add $457.78 to the previous price. Ethereum is expected to finish the year with a maximum trading price of $3,789.14. If all other things become equal, the price could double after the much anticipated Bitcoin halving. 

 

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Filed under: Bitcoin - @ November 24, 2023 5:14 pm