BNB still managed to achieve its highest weekly volume in the last 24 hours. This may explain why the price continued to rally although the lack of enthusiasm suggests that BNB bulls are pulling their punches.
Binance US found itself in a pickle as the SEC pushes the pedal on regulatory scrutiny.
BNB confidence dropped as multiple Binance US executives resigned.
BNB holders are exercising caution with the cryptocurrency amid the ongoing standoff between the SEC and Binance US. On top of that, the crypto exchange recently lost multiple executives.
The Binance US CEO, head of legal and its Chief Risk Officers were among the executives that recently resigned. These resignations were reported at a time when Binance US has been facing some tumultuous times. Pressure and scrutiny from the SEC have further exasperated the situation.
BNB traders are now concerned that the aforementioned woes might suppress the cryptocurrency’s performance. Its on-chain data already confirms that BNB holder confidence has been declining since its 12 September peak. The weighted sentiment metric was at its lowest weekly point at the time of writing.
Despite the dipping sentiment, BNB still managed to achieve its highest weekly volume in the last 24 hours. This may explain why the price continued to rally, although the lack of enthusiasm suggests that BNB bulls are pulling their punches. It seems to be a reflection of the FUD and concern around Binance’s latest woes.
Is BNB’s price action headed for a rockier path?
BNB’s price revealed the lower market confidence on account of Binance’s current issues. But the real question is whether BNB holders and traders are at risk of more bearish activity. The short answer is that it is indeed the negative publicity that could crush the prevailing demand.
BNB’s current scenario is reminiscent of how XRP struggled with low demand before the court’s ruling. Perhaps the biggest challenge right now is that Binance’s struggles might lead to its exit from the US market if it fails to meet the SEC’s requirements.
The Impact on Binance US Operations
The lengthy battle between Binance US and the SEC has already had a negative impact on its operations. For example, the exchange exceeded $10 billion in trading volume and has since dropped to below $20 million. This reflects the shift that has occurred now that most US based users have pulled back from using Binance.
If Binance US gets booted, there is still the global version of the exchange. However, the impact would likely be severe. A classic example is the thousands of jobs that will reportedly be lost if that happens. While that is a real possibility, there is still the other side of the coin where Binance might get over its current situation.
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