Blue-chip cryptocurrencies are experiencing a pump on Wednesday following news of Binance’s settlement with the US Department of Justice and Commodity Futures Trading Commission (CFTC), resulting in the payment of fines exceeding $7 billion. The market-wide relief rally saw Bitcoin briefly drop to the $35,700s before rebounding by 4.5% on Wednesday. Analysts suggest that the settlement does not prompt a rush to withdraw crypto from the platform, as Binance’s reserves remain strong. Furthermore, it increases the likelihood of the SEC approving spot Bitcoin ETFs in the coming months.
Relief sweeps the market as fears concerning Binance’s troubles with regulators and authorities in the US are alleviated. JP Morgan views the Binance settlement positively, removing “systemic risk” from the crypto market. As a result, Bitcoin has made a near $2,000 swing upwards from its earlier lows and currently trades in the $37,600s. Ethereum (ETH) has increased around 4% in the past 24 hours, trading in the $2,030s. Other cryptocurrencies such as XRP (XRP), Solana (SOL), and Cardano (ADA) have also experienced gains between 3-8% over the same period.
