Crypto Markets Recover Swiftly Post Binance CEO’s Resignation; No Panic Sell Observed

The post Crypto Markets Recover Swiftly Post Binance CEO’s Resignation; No Panic Sell Observed appeared first on Coinpedia Fintech News

Crypto markets have shown a remarkable rebound just one day after the surprising announcement of Binance CEO Changpeng Zhao’s resignation. Contrary to expectations, there has been no panic or mass withdrawal from the world’s largest crypto exchange, Binance.

Despite the news triggering a $956 million outflow, Binance’s total holdings value surged to $65.2 billion as cryptocurrency prices experienced an upward trend.

Steady Operation Despite CEO’s Departure

Binance, renowned as the leading crypto exchange by volume, faced a significant challenge with the resignation of its influential CEO CZ. Despite concerns, there was no substantial withdrawal of funds from the platform in the 24 hours following the announcement.

Contrary to speculations about a mass exodus from Binance, the user base appears to be standing firm. While some traders have diversified their portfolios across multiple exchanges, the anticipated large-scale withdrawal from Binance has not materialized.

On Nov. 22, on-chain analytics provider Nansen reported that withdrawals continued without a mass exodus, noting a slightly elevated outflow of $956 million, which was not deemed alarming.

Here's our latest update on @binance, 12 hours after our previous one

At the time of writing, withdrawals are continuing, and we're not seeing a mass exodus of funds

Over the past hour on Ethereum, Binance has a $17M negative netfow (more leaving the exchange than what's… pic.twitter.com/yQPtMl5ue8

— Nansen (@nansen_ai) November 22, 2023

Despite significant changes, Binance’s holdings value increased to $65.2 billion, demonstrating its resilience.

Further, Nansen highlighted that there were two more substantial outflows from Binance in the past year, one in December 2022 following insolvency rumors and the FTX aftermath, and the other in June after the SEC sued the company.

Binance to Pay $4.3B without Selling Any Crypto

On Nov. 22, Coinpedia reported that Binance, with over $6 billion in corporate assets, is likely to pay the full $4.3 billion fine without selling any crypto. 

The new CEO, Richard Teng, emphasized the strength of the company’s fundamentals, operating as the world’s largest crypto exchange with a debt-free capital structure and robust revenues.

Facing regulatory challenges head-on, Binance has proactively engaged in dialogue with regulatory bodies, introducing changes to enhance compliance. The exchange has taken steps to restrict access to certain features in specific regions, showcasing its commitment to adhering to local regulations.

Crypto Markets Regain Momentum

Despite the initial market turbulence triggered by the Binance news, crypto markets have fully recovered, reflecting a 4.8% increase in total capitalization to $1.48 trillion. However, over the past 24 hours, $70 billion has entered the space, signaling confidence and resilience.

Bitcoin has surged 3.8% to $37,430, and Ethereum has gained 5.4% to reach $2,068 during the Thursday morning Asian trading session. 

Other altcoins, including Solana (SOL), Avalanche (AVAX), and Uniswap (UNI), have also posted significant gains, contributing to the overall recovery of the crypto markets.