While Coinbase has decided to suspend its margin trading on futures following news from the US CFTC, Binance (BNB) sees it explode its trading volume. This significant increase in the level of trading on the platform in less than 24 hours preceded the crash of Bitcoin (BTC).
When Binance weighs $ 37 billion
According to data from CoinMarketCap, the volume of transactions on Binance, reached a new ATH on November 24, 2020.
While Bitcoin was $ 1,000 from its ATH of $ 19,891 as of December 2017, trading volume on Binance reached new highs, with an estimated value of $ 37,291,444,117, which is a 40.5% increase in less than 24 hours.
During the week of November 16, 2020, this volume amounted to approximately $ 25 billion according to data from CoinMarketCap.
Hikes in the past
This increase coincided with a bullish movement in the price of the main cryptocurrencies on the market: Bitcoin, theEther (ETH) and Ripple (XRP).
For the first time since 2017, the course of Bitcoin exceeded the $ 19,000 mark during the week of November 23, 2020; many indicators then suggested that this trend could continue.
The price of BTC however collapsed on November 26, 2020, dropping to the $ 16,600 level before rising again. Bitcoin is trading at $ 17,148 at the time of writing.
TheEther recorded an increase of over 25% during the week of November 16, 2020. Its price has since fallen and is currently trading at $ 523.
As for Ripple, its price had reached $ 0.73, its all-time high for 2020. The XRP is currently trading at $ 0.47 on Binance.
Users of Binance to the United States are probably not the cause of this explosion in trading volume on the platform.
Many tweets indicated that an email from Binance gave them 14 days to withdraw their funds and proceed with closing their accounts.
If they refused to comply, their accounts would be locked and therefore inaccessible to their holders.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Figures are awaited on the impact of the collapse in the price of BTC on November 26, 2020, on trading volume on major crypto exchanges. News of a Coinbase struggling to withstand this high Bitcoin volatility would come as no surprise. Rather, the opposite would surprise.
Litecoin, welcome in the Silver Age