Bearish News Has Limited Impact on Bitcoin Price
Even though Binance pleaded guilty to violating laws on money laundering and terror financing and faced hefty penalties, Bitcoin continues to trade near $37,000 on November 22. Analysts suggest that some deliberate manipulations may be at play, involving unbacked stablecoins with ties to the exchanges under regulatory pressure.
After the U.S. government indicted Binance and CZ, the company’s CEO, the impact on Bitcoin’s price was minimal at only $50 million in BTC leverage long futures contracts.
Kraken, another exchange, has also faced regulatory scrutiny from the United States Securities and Exchange Commission (SEC), but the impact on Bitcoin’s price has been minimal.
Bitcoin Derivatives Display Resilience
Analysis of Bitcoin futures and options metrics indicates a minimal impact on professional investors’ risk assessments. The price of Bitcoin monthly futures contracts and the options 25% delta skew demonstrate optimism over the past four weeks. Therefore, despite the regulatory actions and potential sell pressure from Mt. Gox, professional traders are inclined to employ hedging strategies, ensuring that the path to $40,000 becomes more certain.
Hot Take
The impact of regulatory actions and the potential sell pressure from Mt. Gox had little influence on the market mood, demonstrating minimal change in professional traders’ appetite for hedging strategies and signaling a path to $40,000 with greater certainty.