Do Legal Issues Surrounding Binance Contribute to the Rise in Bitcoin Price?

• Bitcoin, one of the most popular cryptocurrencies worldwide, demonstrated its dominance in the crypto space by surpassing $38,000 for the first time this year.
• Recent legal troubles surrounding money laundering at Binance seem to be making a significant contribution to the rise of Bitcoin.
• Since the announcement of the potential approval of the Bitcoin spot ETF in October this year, the price of Bitcoin has experienced an extraordinary surge.

Bitcoin’s price is rising following the legal issues faced by Binance in the US and the resignation of Changpeng Zhao: How did this happen?

Connection Between Binance and Bitcoin’s Rise

Bitcoin, one of the most popular cryptocurrencies worldwide, demonstrated its dominance in the crypto space by surpassing $38,000 for the first time this year. Although the price quickly dropped, Bitcoin created significant speculation among crypto enthusiasts with its extraordinary surge in the past few days.

The recent legal troubles surrounding money laundering at Binance seem to be making a significant contribution to the rise of Bitcoin. Binance CEO Changpeng “CZ” Zhao recently admitted guilt to federal charges made by the US Department of Justice and agreed to a $4.3 billion settlement. This situation contributes to restoring confidence among crypto market enthusiasts regarding the future of the exchange and its impact on the overall crypto markets.

Additionally, the above-mentioned development coincides with the conviction of Sam Bankman-Fried, the founder of FTX, in a federal fraud and conspiracy case, just a month ago. Recent discussions about the potential approval of the Bitcoin spot ETF have increased speculation among crypto investors and traders because it is believed to be contributing to Bitcoin’s price surge.

The ETF could provide traditional investors with exposure to Bitcoin without directly owning or overseeing it, potentially expanding the investor pool and creating additional demand. Bitcoin has experienced continuous price fluctuations between the $25,000 support level and the $30,000 resistance level since March of this year.

Moreover, since the announcement of the potential approval of the Bitcoin spot ETF in October, the price of Bitcoin has surged extraordinarily and briefly surpassed $38,000 on November 24th.

Macroeconomic Factors

Investors also considered the minutes of the Federal Open Market Committee meeting. The minutes, reflecting officials’ limited interest in reducing interest rates in the coming period, could have a moderate impact on risk assets like Bitcoin. While the Federal Reserve’s cautious stance may limit short-term Bitcoin prices, the overall outlook for the cryptocurrency remains optimistic.

Bitcoin (BTC) Price Assessment Report

At the time of writing, the price of Bitcoin is trading at $37,860 on November 25th, showing a 0.18% increase in the last 24 hours. Additionally, the token exhibited a significant increase of 3.45% in the past week and a 10% increase in the last month. Furthermore, the token gained significant traction in the broader crypto markets by briefly surpassing $38,000. Interestingly, the 24-hour trading volume was evaluated at $19.93 billion, reflecting a 29.89% increase.