In the past 24 hours, the cryptocurrency world has been thrust into a tumultuous whirlwind of events, primarily revolving around the renowned crypto exchange, Binance, and its CEO, Changpeng “CZ” Zhao.
These developments have sent shockwaves through the digital asset space, resulting in a rollercoaster ride that witnessed a staggering $175 million in liquidations for traders who had taken long positions.
On November 21, CZ made a startling announcement amidst his ongoing legal battle with the U.S. Department of Justice (DOJ).
He revealed his intention to plead guilty to charges related to violating Anti-Money Laundering laws and subsequently announced his resignation as the CEO of Binance.
In a parallel move, the DOJ disclosed a monumental $4.3 billion settlement with Binance, marking a significant chapter in the exchange’s history.
As part of its restructuring, Binance swiftly appointed a new CEO.
The repercussions of these events were felt far and wide across the cryptocurrency markets.
According to data from CoinGlass, a crypto derivatives platform, a staggering $175 million worth of long positions were liquidated within the span of 24 hours.
Conversely, short positions worth $51 million faced a similar fate.
The overall market experienced tumultuous movements, with over $226 million in crypto assets being liquidated during this period, affecting 92,742 traders.
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Notably, the largest liquidation occurred on the BTC/USD pair of crypto exchange Bybit, where approximately $2.35 million was liquidated.
Aside from the extensive liquidations, there were significant shifts in the flow of crypto assets within the Binance exchange itself.
Data from DefiLlama, a data aggregator, indicated that Binance’s asset inflows plummeted by over $1 billion in the last 24 hours.
This suggests that some traders have temporarily halted their deposits into the exchange, possibly due to uncertainties arising from the recent developments.
Interestingly, on November 21, Binance’s native token, BNB, embarked on a bullish rally, defying the prevailing market sentiment for the day.
However, this rally was short-lived, as news of the DOJ settlement emerged. BNB reached an impressive five-month high of $271.9 before retracing to $237 at the time of writing.
In conclusion, the last 24 hours have been marked by a whirlwind of developments in the cryptocurrency space, with Binance and CZ at the center of attention.
The impact has been profound, with significant liquidations, market fluctuations, and a notable shift in asset flows within the Binance exchange itself.
The cryptocurrency market remains as dynamic and unpredictable as ever, responding swiftly to unfolding events.
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