Binance’s DOJ Settlement Fuels Bitcoin Price Increase
Binance’s settlement with the US Department of Justice has triggered a significant increase in Bitcoin’s price. This development has reignited traders’ hopes for the approval of a spot Bitcoin Exchange Traded Fund (ETF), which is expected to bring substantial capital into Bitcoin, thereby driving up prices across the crypto market. Despite Binance co-founder Changpeng ‘CZ’ Zhao’s guilty plea and a hefty $4.3 billion settlement, the market noticed Binance wasn’t suffering from a massive funds exodus like FTX did post its liquidity crisis. The market also displays positive indicators for a spot Bitcoin ETF approval, fueled by the Binance-DOJ settlement. With a 124% increase this year and volatility on the uptick, Bitcoin’s price may experience further surge if the ETF is approved. The SEC’s upcoming deadline for the ETF approval is January 10, and the approval could create up to $600 billion in fresh demand, potentially leading to a $1 trillion hike in Bitcoin’s market capitalisation. As investors eagerly await enhanced liquidity from approved ETFs, institutional investors have already pumped in over $1 billion into crypto funds over the past year, with more than $240 million allocated to Bitcoin. This demonstrates a robust interest and faith in Bitcoin, further propelling the Bitcoin price increase.
