In early August, sources leaked that US Justice Department officials were considering a fraud charge targeting Binance, the world’s largest cryptocurrency exchange. But officials said they feared it could trigger a market run similar to the FTX bankruptcy in November 2022.
Despite these concerns, the Securities and Exchange Commission and Commodity Futures Trading Commission have not been deterred from filing their own complaints against Binance. Binance has partially accused Binance and its founder, Changpeng “CZ” Chao, of allowing Americans to use prohibited products. Zhao had access to a market maker called SigmaChain, which he “owned and controlled,” and manipulated trading volumes.
To put the numbers into perspective, at the time of this writing, Binance is facilitated $7 billion in trading volume over the last 24 hours. Coinbase raised a relatively small amount of his $970 million, while another big-name exchange, KuCoin, fell short of his $350 million.
With markets volatile and questions lingering over whether central banks will achieve a successful “soft landing” for the global economy in the coming months, what will happen if law enforcement joins regulators in targeting Binance? It’s natural to wonder if it will have any effect. As feedback, we asked a number of Cointelegraph staffers for their thoughts and how they plan to treat their investments if the Justice Department charges Binance or its executives.
Cointelegraph: How do you think the market would react if the Justice Department filed charges related to Binance? When that happens, are you going to buy or sell? And what do you think will happen to the price of Bitcoin on December 31st?
Reporter Joe Hall: If the DOJ files a lawsuit related to Binance, Bitcoin will likely fall and faceplant the entire cryptocurrency industry. But there is a global need for healthy, decentralized and censorship-resistant money, and bitcoin buyers in Africa, Europe and Latin America will devour that drop. Personally, I like to keep asking myself (and my Bitcoin node): Are there only 21 million Bitcoins? If the answer is yes, I will continue to earn, save and spend Bitcoin. (Spoiler alert, the answer is yes.)
What is the BTC price on December 31st? $38,000. Dr. Adam Back, Paolo Ardoino (Chief Technology Officer at Bitfinex/Tether) and Giacomo Zucco (Bitcoin Consultant) all believe Bitcoin will surpass $35,000 by the end of this year. said to me. They are very smart people when it comes to Bitcoin. No one knows how much the price will rise before the halving, but it feels like bitcoin sentiment is slowly warming (again).
Reporter Tom Blackstone: In my experience, news like this has little impact on the market in the long run. He has three reasons. First, prosecution doesn’t make much sense unless a conviction is obtained, and trials can take a very long time. Second, if one exchange goes down, another will pop up in its place. Thirdly, cryptocurrencies are too convenient for consumers to let go, and interest in cryptocurrencies naturally grows as more people learn about them. So I think it will continue to be a good investment regardless of the news cycle.
What is the BTC price on December 31st? On the chart, Bitcoin has support at $15,300 and resistance at $41,000, so we expect the price to be in that range by the end of the year.
Related: Demand Pushes Bitcoin Price to $130,000
Jonathan DeYoung, Senior Copy Editor: My investment theme is to last a lifetime and hope the market continues to grow in the medium to long term. I rarely even look at my saved stuff. I try to forget about cryptocurrencies, and they rarely come to mind when I think about short-term financial planning. This provides a degree of psychological isolation from market-moving events, such as the case when Binance was indicted.
What is the BTC price on December 31st? now or I have no particular idea.
Casio Gasson, Cointelegraph Brazil reporter: It will be a big blow to the market. There is a high likelihood of an outflow of assets from Binance, which would seriously damage the exchange’s image globally. This will affect the price of Bitcoin and the entire asset system on the BNB chain. A new crash similar to what happened with Terra is likely, with several investors withdrawing assets in protocol staking on the BNB chain, as well as in forex-related products such as Binance and PancakeSwap.
We will sell it on the day. The event has already bottomed out and the buyer is expected to make a purchase within his next 48 hours after trading resumes.
What is the BTC price on December 31st? I don’t think it will exceed $400,000. There is research showing that the impact of the Bitcoin halving is diminishing. If the Securities and Exchange Commission approves a Bitcoin spot ETF, it could reach $40,000. otherwise up to $35,000.
Related: Bitcoin ETFs: Even Worse Than Central Exchanges For Cryptocurrencies
Christina Lucrezia Corner, Editor-in-Chief: In the early days of the blockchain market, accusations against giants like Binance have shocked the entire industry and its close-knit community. And not only do these allegations target specific individuals, they also question the credibility and reputation of our industry as a whole. What follows is a dynamic process resembling a seismic event that reshapes perceptions and redefines power dynamics within ecosystems.
But these shockwaves are not only destructive. They drive growth and transformation, reinforce industry values, unearth hidden resources, and foster sustainability and positive change. Among the challenges, the blockchain sector is becoming stronger and stronger by its ability to embrace improvements and avoid vulnerabilities. So is Bitcoin.
What is the BTC price on December 31st? Personally, I feel that the value of Bitcoin is not an absolute value, but rather a comparative value with other currencies. I strongly believe that. Volatility. On December 31st he could buy a Tesla Model 3 for 1 bitcoin [$32,740 after a tax credit, as of Aug. 8], even forgive Elon Musk for giving up on birds. perhaps. (This is not investment or moral advice!)
Felix Ng, Editor: I have seen no, and no, “too big to fail” companies go bankrupt, cryptocurrency companies or not. That said, it still seems unlikely that such allegations will completely shut down the largest cryptocurrency exchange.
However, the fees on Binance will likely cause cryptocurrency prices to fall, causing funds to move to other exchanges and cold wallets. Another exchange could jump to the top spot. It has happened throughout the history of cryptography. If there is a sudden drop, I will buy.
What is the BTC price on December 31st? Are your fingers in the air? $32,000. The Christmas period has historically been a positive period for Bitcoin, so assuming BTC trades roughly flat over the next six months, we should see a slight surge near Christmas.
Reporter Marcel Peckmann: Since Binance does not (mostly) operate in the US, any impact would be minimal. The BitMEX case was very similar, with the founders fined $100 million, house arrest, and that’s it. Indeed, additional steps may be required for US market makers currently active on Binance International, requiring US citizens to use a VPN at all times when using the exchange and trading High can be reduced by up to 20%-30%. Other than that, if Bitcoin plummets solely because of the Binance issue, it’s a buying opportunity.
In my opinion, Tether is still the most significant risk to the ecosystem (in theory), as stablecoins have literally zero uses without a fiat gateway.
What is the BTC price on December 31st? I don’t understand. seriously. I always bet that the price stays the same for 0-6 months. My guess is that ETF approvals can yield 50% to 130% gains in two months, so if he started at $30,000 he could reach $69,000.
Related: BlackRock’s Misguided Effort To Create “Crypto For Dummies”
Head of Markets Ray Salmond said: If Significant enforcement actions have been taken from the Department of Justice, such as a red notice issued for CZ’s arrest and the closure of Binance, even if only temporarily, which will help the broader cryptocurrency market and Bitcoin price. I think it will have a sharp negative impact on For over 6 years, I’ve been looking at bitcoin price charts literally every day and buying all that time. I value dollar cost averaging and don’t use derivatives much anymore. As such, it is price agnostic and beyond the mental shock of the Binance explosion and its impact on cryptocurrencies.
I believe the sharp drop in BTC and ETH is an accumulation opportunity. Also, I always use 1 BTC as my trading instrument, selling at micro tops and buying back at swing lows, so most of my bitcoins are free of transaction costs other than taxes. Because of this, my risk tolerance may differ from that of other investors, and I see a plunge in the BTC price as an opportunity. Somehow, this magic money always finds a way back.
What is the BTC price on December 31st? i don’t have anything The current trading range is too narrow. We are still in that range and volatility is at its lowest level in years.
Arijit Sarkar, Editor: If the DOJ drops the charges against Binance, panicked sellers will cause prices to drop temporarily. However, it has no long-term effects. When Mt Gox collapsed, people thought it was the end of Bitcoin because exchanges controlled 80% of the Bitcoin in circulation. But 10 years later we are having the same discussion here.
Even if the price drops, I’m not in a hurry to sell. I will be accumulating more bitcoin in silence and waiting for the bull market to reap the rewards of my patience.
What is the BTC price on December 31st? Bitcoin’s historical performance shows near $25,000. I see a temporary drop in Q3 and Q4 of 2023, largely due to rising regulatory hurdles, increasing government affinity for central bank digital currencies, and continued concerns about ecosystem collapse. I expect.
However, this is all common knowledge prior to the April 2024 halving. The price of Bitcoin has skyrocketed with each halving event. I will spend the next 3 quarters of his dollar cost averaging accumulating as much bitcoin/satellites as possible.
Rudy Takara, Opinion Editor: Altcoins look attractive for now. Coins like Algorand are 5% to 10% off their all-time lows. The market could dip a bit before recovering, but it is more likely a product of time surrender rather than panic sellers reacting to the Binance indictment or other news events. I don’t think most tokens will drop more than 30% from here no matter what happens.
What is the BTC price on December 31st? $32,500. My only regret is not buying more. (But you might regret it if you take my word for it.)
This article is for general informational purposes and is not intended, nor should it be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views or opinions of Cointelegraph.