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Bitcoin Price Tanks, Did The Halt of Binance Futures & Derivatives Trading Fuel The Plunge?

Written by: Sahana Vibhute

July 30, 2021

The crypto market witnessed a little sigh of relief as most of the assets after a 50% freefall was able to gain a minimum of 10% to 15%. The market sentiments changed from bearish to bullish since the B-Word event. Where-in Tesla CEO Elon Musk hinted at a resumption of bitcoin payments for Tesla Cars. But currently, again the Binance FUD may have declined the Bitcoin price to a large extent. 

In a recent update, one of the popular crypto exchanges which are constantly facing regulatory heat has stopped future and derivative trading in European countries. Rolling out an official notification, Binance discontinued the trading in Germany, Italy and the Netherlands. However, the press release clearly stated the users cannot open new trade but close the existing one in 90 days. 

Binance CEO Changpang Zhao also tweeted in this regard terming the discontinuation as a step for a bigger long term growth.

As the discontinuation outspread in the crypto space, BTC price lost yet another $1000 and plunged below $39,000. However, with a quick recovery, the asset regained the positions above $39,000 but closing the daily trade above $40,000 could be a tedious job. With the price dip, many buyers also jumped in which also helped to ease the mounting selling pressure. 

Many Exchanges Could Follow Binance

Binance, due to regulatory issues had lowered the leverage rate from 100x to 20x, a couple of days before. Citing the huge risks involved in futures trading, many countries also inculcated a similar approach. However, supporting the decision, a popular analyst, Micheal de van Poppe, believes the other exchanges could also follow the same very soon. 

On the whole, the bitcoin price plunge could be a short-lived one as with the ease of Binance Futures FUD, a considerable recovery may be imminent. Currently, a substantial recovery has begun as the BTC price is trending above $39,200 at the press time.

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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