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After the release of the terrible news about Binance and CZ, many expected a crypto market collapse today.
Today, however, we can say that such a collapse did not occur, even though the crypto market is in the red.
Today’s crypto market drop
After all the news regarding the now closed affair between Binance and the US Department of Justice was published, many cryptocurrencies today are losing 2% to 6% compared to yesterday.
Therefore, this is not a collapse at all, as hikes of this magnitude are actually the norm in crypto markets.
Indeed, even ETH has already recovered all of yesterday’s losses, and BTC is down only 1.6%.
In particular, it is precisely Bitcoin that has held up well, as it has done nothing but continue its lateralization around $37,000.
Bitcoin’s lateralization
Such lateralization of Bitcoin‘s price began on 9 November, or thirteen days ago.
Indeed, on that day the price of BTC rose from $35,300 to almost $38,000, and then fell the next day to around $36,000.
Since then it has actually done nothing but hover around $37,000, without returning more widely below $35,000.
Indeed, if we exclude brief upward and downward excursions, it has now been hovering within a fairly compressed range of $35,700 to $37,500 for almost two weeks.
Yesterday the price was right around $37,500, and then it dropped first to $36,300 and later to $35,700. In other words, it did not break out of the range of the last two weeks.
Therefore, these were absolutely normal movements, so much so that today it returned to $36,600.
In other words, there was absolutely no collapse, but a normal swing within the lateralization range of the last few weeks.
Ethereum and the altcoins
More or less something similar has happened to the price of ETH, which indeed has recovered from the drop even better.
By now the price of Ethereum has been fluctuating between $1,900 and $2,100 since 9 November, like Bitcoin, and yesterday it did nothing but fall as low as $1,930 but only to return to $2,000.
So again there was no collapse, but a trivial swing within the range of recent weeks.
Some altcoins, on the other hand, have lost a little more.
Several are losing 3% or more, such as XRP (RIpple), SOL (Solana), ADA (Cardano), DOGE (Dogecoin), and TRX (Tron), with even TON making a +3% loss instead.
These are very small losses, which prevent one from talking about a real collapse.
Avalanche’s AVAX and Polygon’s MATIC, on the other hand, lose 5%, but this is also within the norm.
The only one that loses a little more is BNB.
BNB’s losses
BNB is losing 8% compared to yesterday because it is in fact the cryptocurrency linked to Binance.
However, even in this case we cannot speak of a real collapse.
Its current value of about $235 is 7% higher than it was a month ago, and it has been losing less than 4% since last week.
The real problem for BNB is not yesterday’s loss, which occurred by the way after a rise up to $270 yesterday before the negative news was published, but the very bad 2023.
Suffice it to say that since the beginning of the year ETH is gaining 67%, BTC 121%, while BNB is losing 4%.
What’s more, 2023’s lowest peak was in mid-October at just over $200, so it is still gaining more than 15% since then anyway.
The bad thing is what it has done after the increases in the first four months of the year, particularly since June. In fact, at the end of May it was still worth more than $300, but by mid-June it had already dropped to $230. The current value is therefore above not only the annual lows of October, but also those of June.
It should also be noted that 2022 closed at $240, which shows that 2023 was not a good year for BNB at all.
Will there be a recovery in the crypto market today?
While it is hard to guess whether BNB’s price will recover anytime soon or not, even taking into account the end of Binance’s affairs with the Justice Department, yesterday’s general drop in crypto markets, on the other hand, could be reabsorbed any time now.
That is, yesterday’s drop had no impact on the medium-term trend, let alone the long-term trend.
On the contrary, there are signs on Bitcoin of a potential further rise, although it is a bit difficult to determine what the real likelihood of that happening is.
Usually in good years such as this one at the end of the year the price of Bitcoin makes new highs, and indeed it did with reaching almost $38,000. We are still more than a month away from the conclusion of 2023, so there would be room for a possible further increase (at least in theory).
Something would be needed, however, to trigger a possible new rise, and right now such a trigger does not seem to be there.