The Binance Coin price has slumped by 8.5% in the past 24 hours, after Changpeng Zhao stepped down as Binance CEO and pleaded guilty to money laundering violations.
Binance has processed around $1 billion in withdrawals since yesterday’s settlement with the Department of Justice, with BNB dropping to $237.17 as of writing.
This marks a 3% loss in a week, although the altcoin has actually risen by 1% in the past hour, while being up by 7.5% in the last 30 days.
But with Binance settling with the DoJ for $4.3 billion, and with new CEO Richard Teng already in place, the exchange could soon stabilize, with BNB eventually recovering as a result.
Binance Coin Price Prediction as Changpeng “CZ” Zhao Steps Down After DOJ Settlement – Will BNB Rally or Dump Now?
BNB suffered a massive fall last night, yet it has begun to recover a little bit, accounting for the slight improvement in its indicators.
Its relative strength index (purple) has begun rising towards 50 after dropping to 40 last night, suggesting that traders may be buying the dip.
At the same time, BNB’s 30-day moving average (yellow) has flattened out after several weeks of rising towards its 200-day average (blue), a sign that yesterday’s news has disrupted earlier momentum.
One of the more bearish signs is that the altcoin’s support level (green) has declined steeply as a result of the drop of the past 24 hours.
It will therefore be important to watch whether it can prevent a further drop below $225.
What’s interesting, however, is that the coin’s 24-hour trading volume remains greatly elevated, having risen to around $3.5 billion after weeks spent at around $1 billion.
This suggests that there’s demand for BNB whenever it sells at a discount, implying that the coin may not fall that far.
As noted above, the reason for all this drama is that Binance has settled with the US Department of Justice, with the exchange admitting to violations of anti-money laundering and other laws.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ Binance (@cz_binance) November 21, 2023
It will pay $4.3 billion as part of this settlement, while Changpeng ‘CZ’ Zhao has stepped down as CEO and also agreed to pay a personal fine of $50 million.
The real question now is where this all leaves Binance, which continues to face legal actions via the CFTC and SEC.
Such actions could compound yesterday’s damage, leading to additional customer exits and ongoing drops in the Binance Coin price.
For this reason, BNB may recover only tentatively from yesterday’s drop, potentially hitting $245 in the next few weeks.
Newer Altcoins With Strong Fundamentals and Less Baggage
While BNB could easily recover in the next few months, many traders may feel uncomfortable taking the risk.
They may be better off turning towards newer altcoins, with a number of presale tokens looking like they could rally big when they list on exchanges.
One of the best examples of this right now is Bitcoin ETF Token (BTCETF), an ERC-20 cryptocurrency that has raised more than $1.3 million in its sale.
Targeting a 25% token burn as milestones are reached.
This strategy aims to reward holders and alleviate selling pressure with a deflationary approach. pic.twitter.com/UiheUjIZB8
— BTCETF_Token (@BTCETF_Token) November 22, 2023
Bitcoin ETF Token has attracted so many early investors because of its deflationary tokenomics, which will see the cryptocurrency burn 25% of its total supply over time.
It will burn 5% tranches whenever Bitcoin reaches certain milestones, with the first set to come when the SEC approves a spot-based Bitcoin ETF for the very first time.
The coin will also have a burn tax on every transaction, which will further reduce its supply, helping to push up its price in the long term.
This is a unique approach to tokenomics, and by linking its supply to Bitcoin, Bitcoin ETF Token is clearly winning over converts quickly.
New buyers can join its presale at the official Bitcoin ETF Token website, where 1 BTCETF token costs $0.0056.
This price will rise to $0.0057 in a couple of days, yet it’s likely to rise much higher once the token lists, and once its burn mechanism kicks in.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.