Market Confusion in Bitcoin Market, Concerns Concerned about Impact of Binance Lawsuit


Macroeconomics and financial markets

In the US NY stock market on the 28th, the Dow closed at $37 (0.12%) lower than the previous day and the Nasdaq at $52 (0.45%) lower.

Due to the easing of concerns in the European market over Credit Suisse Group (CS) and Deutsche Bank and the determination of the underwriters of the failed Silicon Valley Bank (SVB), the excessive financial anxiety has subsided somewhat, but nervous developments continue. .

connection:Poor sense of direction for the US stock market, this week ahead of PCE core deflator, etc. | 29th Financial Tankan

connection:Stock investment recommended for cryptocurrency investors, representative cryptocurrency stocks of Japan and the United States “10 selections”

Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin rose 1.44% from the previous day to $27,379.

BTC/USD daily

On the 27th, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against the largest crypto asset (virtual currency) exchange Binance. Like the US stock index, the development lacks a sense of direction.

The CFTC lawsuit alleges violations of unregistered derivatives trading rules in the United States.

connection:CFTC sues Binance and CZ for violating U.S. law

According to CryptoQuant analyst Eralp Buyukaslan, market turmoil on this issue is limited.

The net flow of Bitcoin exchange wallets has remained calm compared to last November, when the FTX shock caused a large outflow of funds from cryptocurrency exchanges.


In addition, there were no major changes in open interest in derivatives trading on Binance, as there was no movement to close all at once after the CFTC headline flowed.


The U.S. SEC (Securities and Exchange Commission) has sued Ripple, and the lawsuit disputed over the securities nature of XRP is reaching its climax. It is also noteworthy that it acknowledges that it is under the jurisdiction of the CFTC.

XRP, the 6th largest market capitalization, continued to rise by 11.2% from the previous day due to the speculation that the trial result is near.

connection:Cryptocurrency selling dominates in CFTC lawsuit against Binance, XRP rises in retrograde over Ripple trial

The CFTC’s view is that the majority of crypto-assets, excluding bitcoin, fall under the “Howey test (determining the securitization of investment contracts)” standards, and that staking services for PoS currencies such as Ethereum are securities. It has also been pointed out that it contradicts the view of the US SEC (Securities and Exchange Commission).

connection:“Bitcoin (BTC) is not a security,” US SEC reiterates

CFTC Chairman Rostin Behnam also argued during the US Senate budget hearing on the 8th of this month that Ethereum is classified as a commodity under the US Commodity Exchange Act.

One of the concerns about the CFTC lawsuit is that Binance has grown too large, partly due to the FTX bankruptcy.

According to a Morgan Stanley survey, Binance accounted for 80% of the Bitcoin (BTC) trading volume traded on centralized cryptocurrency exchanges in February 2011. Inviting the withdrawal of market makers could also result in a noticeable decline in market liquidity.

Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, said on the 28th that “the lawsuit could very well deal a fatal blow to industry giant Binance.” He expressed great concern.

connection:US CFTC Chairman: Confident in Binance Lawsuit

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