The Limited Times

Now you can see non-English news...

Doubts over Binance abort Bitcoin comeback attempt and raise crypto fears

2022-12-19T08:23:40.546Z


It looked like December was going to bring a respite from the endless slump that has been 2022 for Bitcoin, but the comeback turned out to be just a mirage. The massive withdrawals a few...


  • The Fall of FTX The Crypto Universe Collapses: Regulate or Die

It looked like December was going to bring a respite from the endless slump that has been 2022 for Bitcoin, but the comeback turned out to be just a mirage.

The massive withdrawals a few days ago at Binance set off alarm bells after the recent collapse of FTX and both the future of the company (the

world's largest crypto

exchange ) and that of

Bitcoin

itself are now a question mark.

The most popular of the cryptocurrencies has accumulated a 64.5% drop so far this year, although the bump is even greater, from

75%, if the maximum of 68,789 dollars that it reached in November 2021 is taken as a reference, compared to 16,718

greenbacks

from yesterday Sunday.

December, as we said, began as a

green hope

for Bitcoin.

The first days of the month, the digital currency drew a small rally in which many investors wanted to see a small turning point, but the trend turned around again as a result of the rumors that in recent sessions dotted Binance.

The company led by

Changpeng Zhao

it has suffered massive multi-billion dollar withdrawals and that run has raised concerns that the FTX case could be repeated.

Several weeks ago, the platform of

Sam Bankman-Fried

it had to declare bankruptcy due to the lack of liquidity and the allegedly fraudulent investments that prevented it from responding to its investors.

Bankman-Fried has been detained in the Bahamas, at the request of the US, where he is expected to stand trial.

But beyond the individual repercussions, the fall of FTX has been a definite blow to the trust and reputation of the crypto market.

The withdrawals on Binance highlight the uncertainty and shattered confidence in the space, a desperation not to get caught up in another FTX event, even when the situation looks very different.

Craig Erlam, Senior Market Analyst, UK & EMEA at OANDA.

Following the withdrawals on Binance, Changpeng Zhao has focused on trying to calm investors by downplaying the exits and attributing them to normal market operations.

In recent days he has focused on trying to deny that the platform is at risk, that the fears are justified and that his reserves are not enough to keep his empire alive.

But it doesn't seem like enough.

"FTX's demise continues to haunt cryptocurrencies. While its founder, Sam Bankman-Fried, faces a wide range of charges, the

exchanges

They continue to experience an exodus of customers.

Not even Binance, the largest platform, has been able to avoid the trend.

Despite the crypto market rebounding quickly on fairly positive US inflation data, in line with other risk assets, confidence is still shattered and will not easily recover.

We see a lasting recovery in the short term as unlikely," says Manuel Villegas, an analyst for Digital Assets at Swiss private bank Julius Baer.

In the entity they attribute the withdrawals in Binance either to some accounts that were potentially blocked, or to the differences that Binance has had with the stablecoin (

stable coin

) of the USDC in recent days.

"Looking at the constant output that most of the

exchanges

have experienced since early November, it is safe to assume that investors are finding other, perhaps more suitable, alternatives to hold their cryptos and that the widespread mistrust of cryptocurrencies

exchanges

it will not go away for the moment.

With the information available, we consider that a short-term recovery remains unlikely for this asset class, as fears of further contagion continue to threaten the crypto space," the analyst adds.

These fears will continue to mark the prices and valuations of the main digital currencies in this final part of the year.

The decline of Bitcoin, in fact, acts as a ballast for the rest of the cryptocurrencies, which also fail to recover.

ethereum

fight to recover the 1,200 dollars;

Solarium

resists around 12.5

greenbacks

, and Cardano was trading yesterday at $0.265.

About the future of

Bitcoin

Oanda's Craig Erlam predicts that "it will take some favorable headlines and a significant improvement in risk appetite in the markets to get it back towards $20,000 in the near term."

To continue reading for free

Sign inSign up for free

Or

subscribe to Premium

and you will have access to all the web content of El Mundo

Source: elmuldo

All news articles on 2022-12-19

You may like

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.