Major cryptocurrencies have been showing a strong trend as we woke up to another piece of good news about SBF being denied bail and being asked to jail until February of next year.

The release of the Consumer Price Index (CPI) statistics for the month of November can be attributed to the unexpected rise in the price of cryptocurrencies. According to recent reports, the CPI annual rate has decreased to 7.1% from 7.7% in October. On the other hand, around 7.3% was projected as the CPI reading for the month of November.

Binance, the world’s largest cryptocurrency platform, has been having some difficulties lately. The exchange apparently witnessed withdrawals of nearly $2 billion in the previous 24 hours, according to blockchain analytics firm Nansen.

The $1.9 billion amount is the largest daily outflow since at least June and was responsible for the bulk of the $2.2 billion in Ethereum-based withdrawals that occurred over the course of the last week.

Binance lost $902 million on Monday due to withdrawals. The sudden withdrawal of capital by investors may be the result of government pressure on the stock market. A long-running criminal investigation into Binance’s compliance with US anti-money laundering regulations and sanctions has been delayed by disagreements between US Justice Department prosecutors.

What does CZ have to say about it?

Changpeng Zhao, CEO of Binance Holdings Ltd., issued a response warning his team members to expect difficult months and affirming that the company will overcome current challenges. In doing so, the crypto billionaire tried to allay concerns about the state of the company’s finances.

CZ said that the cryptocurrency sector is at a historic moment in a message given to employees. CZ also stated that Binance is in a good financial position and would survive any crypto winter.

In his words:

“While we expect the next few months to be eventful, we will get through this challenging period and be stronger for getting through it.”

Referring to the widespread investor exodus, he noted that as a result of FTX’s recent collapse, his company has come under a lot of additional scrutiny and difficult investigations.

There is no doubt that the failure of FTX has shaken investor confidence, leading some traders to seize control of their tokens and remove them from exchanges.

FTX’s failure has certainly resulted in a lot of havoc across the industry. It was decided this morning not to bail out the disgraced SBF, and it is obvious that all this drama is the reason for the problems Binance is experiencing now.

final thoughts

The cryptocurrency industry may have additional difficulties as a result of this. All day, every day, people deposit and withdraw funds for a wide variety of reasons. Binance has a debt-free capital structure and guarantees all user assets at a 1:1 ratio. As a result, I think the current investor stance is very reasonable.

This post Binance CEO CZ Warns of a Rough Ride Ahead! What’s next for Crypto Market?

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