Binance Coin Price Lags as Market Stirs Over US Regulations

Restless crypto market sees movement as the regulatory grip tightens.

By
Dardania Havolli
on
August 10, 2021
Category:
BSC News

Regulatory Reactions

The crypto world endured significant market swings in a week that also brought a flurry of regulatory developments. An infrastructural bill that threatened to offer no real clarity through its imprecise language, and SEC chair, Gary Gensler, weighed in on Bitcoin ETFs, seemingly derailing hopes of a straightforward rally on Bitcoin. 

Despite all the news from lawmakers, the industry remained bullish. Prices appeared to power through the news that came from all angles. Gensler’s comments left reasons for optimism.

“This asset class is rife with fraud, scams, and abuse in certain applications,” Gensler stated at the Aspen Security Forum on Tuesday, 3rd August. He seemed to indicate a preference for futures as he went on, “I anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (’40 Act).”
Source

Binance has endured its own course of regulatory scrutiny with recent futures closures in Hong Kong and throughout Europe. Ontario, Canada also added Binance to its list of ‘restricted jurisdictions.’


How Has The Market Responded to Regulatory Pressure?

There was seemingly an initial drop-off for the BTC price in response to Gary Gensler’s comments. These could always have been down to other factors, but the timing seemed to suggest that price was reacting to both the developments of the infrastructural bill and Gensler’s comments. 

The past week saw a gradual dip before the present recovery, at the time of writing. 

Source 

The Binance Token, BNB, followed the market, moving from a high price of $360 on the 8th of August, eventually falling back to $333, according to the Binance exchange.

As underlined previously, the reason for these market fluctuations can never be guaranteed, and you should be wary of parties that claim otherwise. The timing of the movements in reaction to the regulatory headlines does pose food for thought. 

Others seemed to connect similar dots and took to Twitter to underline their own ideas. CEO of Alameda Research, and respected trader Sam Trabucco, appeared to spot a similar pattern. 

“The crypto market has been very active this week -- and that makes sense, considering all that’s been going on in the U.S. What’s actually happening, though -- and why? A thread about efficient markets,” Trabucco posted to Twitter on August 9.

In an intriguing thread, Trabucco ends on the idea that although regulatory response did not necessarily offer clarity, it was not enough to do any serious damage to market sentiment. That appears to be the case at the time of writing, but this is a quickly developing market, so keep your eyes peeled.

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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