Bitcoin, Ethereum, Dogecoin Tumble After Binance CEO Changpeng Zhao Resigns, Pleads Guilty To Felony Charge: Analyst Warns Apex Crypto Could Crash Over 40%

Cryptocurrency Market Downturn Following Binance Settlement and CEO Resignation

Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced a downturn on Tuesday evening following a significant development involving Binance, one of the largest cryptocurrency exchanges.

The Department of Justice (DOJ), Commodity Futures Trading Commission (CFTC), and U.S. Treasury jointly unveiled a substantial $4.3 billion settlement with Binance. As part of the settlement agreement, the former CEO of Binance, Changpeng Zhao, will reportedly plead guilty to one felony charge. This settlement aims to address both criminal and civil cases related to the cryptocurrency exchange.

The settlement requires Binance to file suspicious activity reports as required by law and review past transactions for any suspicious activity. The United States Attorney General, Merrick Garland, stated that this will advance criminal investigations into malicious cyber activity and terrorism fundraising, including the use of cryptocurrency exchanges to support groups such as Hamas.

Despite the troubling news surrounding Binance, users of the exchange, as well as centralized exchanges in general, are not hastily abandoning the platform. According to Glassnode, the net change in Bitcoin positions on Binance is significantly lower than the numbers observed in January and July, indicating that users are staying relatively calm amidst the situation.

Following Changpeng Zhao’s resignation, Binance appointed Richard Teng as the new CEO on November 21. This move aims to reaffirm the sentiments of the crypto community regarding the way forward for the exchange.

In terms of market performance, the top gainer in the past 24 hours was FTX Token, which saw a gain of 13.64%. Other gainers included dYdX and Klayton, with gains of 4.39% and 2.19% respectively. However, the global crypto market cap currently stands at $1.41 trillion, reflecting a decrease of 0.19% in the past 24 hours.

In the traditional stock market, stocks took a downward turn on Tuesday as traders analyzed the recent Federal Reserve meeting minutes, which provided no indication of potential interest rate cuts. The S&P 500 experienced a slight dip of 0.20%, while the Nasdaq Composite fell by 0.59%.

The Federal Reserve conveyed its belief that policy needs to remain on the “restrictive” side due to concerns surrounding potential stubborn inflation or higher ticks. Policymakers decided to leave the benchmark rate unchanged at 5.25% to 5.5%.

Cryptocurrency analysts have noted that market corrections are an integral part of the cycle. Michael Van de Poppe predicts that the crypto market will grow tenfold in the next two years, indicating that accumulating at current levels could be beneficial in the long run. Another analyst, Rekt Capital, suggests that Bitcoin may mirror its 2016 price pattern, which could lead to a significant decline of 40% following a pre-halving rally.

Santiment, a firm specializing in on-chain data analytics for the crypto market, has made an interesting observation. While many attribute the recent major market retracement to the Binance news, altcoins had already been experiencing a decline in market caps. Some traders seem to be exchanging their Binance Coin (BNB) for FTX Token (FTT).

Overall, the cryptocurrency market experienced a downturn following the Binance settlement and CEO resignation. Market participants are closely monitoring the situation and assessing the potential impact on the broader crypto market.