Market Response to US Regulatory Fines on Crypto Platforms -

Binance is being sued by U.S. federal agencies for several issues, including offering financial products without authorization and money laundering cases from the U.S. Treasury Department and the Commodity Futures Trading Commission (CFTC). The total fines amount to over $4.3 billion.

CryptoQuant reveals that funds from Binance may be flowing to Coinbase, noting that Coinbase’s reserve funds increased by about 12,000 BTC while Binance’s decreased by 5,000 BTC. This is estimated to be due to retail investor outflows.

Nansen reports that the capital outflow from Binance is not yet at a concerning level compared to past figures, such as the case with FTX in late 2022. In the 24 hours following the news, there was an outflow of Ethereum valued at over $956 million.

On November 20, ARK Invest submitted its third amendment to the Bitcoin ETF documents developed with 21Shares, after the U.S. SEC postponed ARK Invest’s application twice. The next deadline for a decision is set for January 11, 2024, which will be the final one.

The average daily transaction fee on the Bitcoin blockchain network surpassed Ethereum following a resurgence in activities related to Ordinals. Bitcoin’s average daily trading fee hit a new 6-month high of $18.67, while Ethereum’s fee was at $7.90.

PlanB, the creator of the stock-to-flow model, reveals that Bitcoin’s price could test the $40,000 level in the short term and has the potential to rise to $100,000 between 2024 and 2028, which coincides with Bitcoin’s next Halving cycle.

Weekly Technical Analysis: 28 November – 4 December 2023

Bitcoin (BTC)

BTC experienced volatility due to the news of Binance being sued, but the price has not made a new low, indicating continuous buying pressure. However, it needs to break the resistance at $39,000 to have a chance of reaching the $40,000 target.

Support: 1,240,000 THB, Resistance: 1,400,000 THB

Ethereum (ETH)

ETH continues to move within a Sideway range after the news about the ETH ETF fund quieted down. It’s believed that if the price drops to $1,900, it could be a good buying point as the short and medium-term trends are still bullish.

Support: 67,000 THB, Resistance: 77,000 THB

GuildFi (GF):

GF increased by 29.4% over the past week, following the trend of other gaming coins. Technically, it has turned bullish in the short term.

Support: 3.6 THB, Resistance: 4.5 THB

Terra Classic (LUNC):

LUNC increased by 22.1% over the past week due to speculation that the chain might be revived. However, the price has risen quite rapidly, so caution is advised in investing.

Support: 0.0036 THB, Resistance: 0.0050 THB

Trading and Investment Considerations For The Week

The disclosure of the results of the U.S. Federal Reserve’s monetary policy meeting did not introduce new opinions. The committee still sees a chance for another interest rate hike. However, the U.S. dollar did not strengthen and continues to show a weakening trend, which positively affects various investment assets.

The U.S. government’s lawsuit against Binance negatively impacted Bitcoin’s price in the short term. However, the market eventually eased its concerns. It’s expected that this will not have a long-term negative impact on the crypto market, as other exchanges are not significantly involved in the U.S. market. The impact of U.S. government scrutiny on exchange businesses is thus limited.

On Wednesday, November 29, the U.S. third-quarter GDP forecast numbers will be announced, expected to show a growth of 4.9%, higher than the previous quarter’s 2.1%. Additionally, on Friday, December 1, the Chair of the U.S. Federal Reserve is scheduled to speak about the U.S. economy. These two events could affect market conditions.

Bitcoin’s price remains Sideway, but Altcoins in the Blockchain Layer1 and 2, DeFi, and large market cap coins are seeing increased trading volumes, allowing for short-term speculative trading. Focusing on buying during dips can still potentially yield returns.

Post Views: 279