Following the news of the DOJ-Binance settlement, BNB price spikes, then drops
BNB's (BNB) price climbs to a 5-month high of $271.90, following a Wall Street Journal report that highlights the US Department of Justice's plan to announce a $4.3 billion settlement with Binance to end the case. The WSJ also reported that Binance founder Changpeng “CZ” Zhao has agreed to step down as CEO of the crypto exchange.
BNB's intraday rally quickly turned to a 5-month high as more information emerged about the DOJ's settlement with Binance.
While the exact details of the settlement were not clear until the November 21 press conference at 3 p.m., crypto market participants appeared to be aware of Binance's legal filing with the Commodity Futures Trading Commission, the United States Securities and Exchange Commission, and the DOJ. As a positive result with the potential problems of the crypto market.
Historically, crypto markets react negatively to the threat of enforcement actions and new regulations, but data from Coinglass shows that BNB volumes, open demand and options have increased over the past 24 hours.
Related: BNB emerges after report DOJ seeks $4B settlement with Binance
While the price of BNB hit a 5-month high of $271.90 on November 21, the move was accompanied by increased liquidity.
At the time of writing, the price of BNB is showing most of its intraday gains, perhaps a sign that the price action is the age-old buy-and-sell news strategy that is widely held in the crypto sector.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
