On Tuesday, November 21, Binance and its CEO @CZ reached a settlement with the U.S. Department of Justice. The settlement requires Binance to pay $4.3 billion, which sparked concerns within the crypto community about potential large-scale sell-offs in Bitcoin and other cryptocurrencies.

The settlement with DoJ addresses accusations involving money laundering, running an unlicensed money-transmitting service, and breaching U.S. sanctions.

This development has sparked speculation and insights within the crypto community. Some noted that before the settlement, Binance moved approximately $3.9 billion in USDT between its wallets, as blockchain data shows. Some suggested that the settlement could pave the way for the spot Bitcoin ETF approval.

There are also concerns, however, that the fine could lead to Binance partially liquidating its Bitcoin and other crypto holdings. Mike Alfred, CEO of Digital Assets Data Inc. and a vocal critic of Binance, suggested that the situation could be strategically orchestrated to allow big players like BlackRock to get a larger market share.

However, it may be noted that these claims lack solid backing. And Conor Grogan, director at Coinbase, countered these assertions with a detailed analysis of Binance’s financial ability to cover the fine.

Crypto markets currently show a ‘mixed’ response as traders digest the implications of Binance’s settlement with DOJ. A CryptoQuant analyst anticipates a ‘significant pullback’ in Bitcoin price soon:

(Source)

Meanwhile, Willy Woo, a well-known on-chain analysis expert, asserts that Bitcoin’s price won’t go below $30k again:

“DENSE HORIZONTAL BANDS:These are price regions where much of the supply moved between investors reflecting strong agreed value.

PATTERN: Whenever BTC had:(a) strong bands of agreed price(b) coming out of a bear market(c) and leading into the next halvening (marked in vertical bands

 … the price never comes back to retest this band of support,” — @woonomic.

Glassnode analysts highlight in their latest weekly on-chain digest that the current Bitcoin rally differs from the previous two, citing the high on-chain accumulation score across various investor cohorts.

(Source)

All in all, the concerns among crypto twiXter regarding Bitcoin potentially “collapsing to $20k soon” due to selling pressure from Binance seem to be unfounded. The available data from Binance suggests that the exchange has serious financial reserves, while on-chain data points to robust market fundamentals.

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MetaTalks disclaims responsibility for any investment advice that may be contained in this article. All judgments expressed are solely the personal opinions of the author and the respondents. Any actions related to investing and trading in crypto markets involve the risk of losing funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.