The end of the week has seen a change in pattern in the market. While the broader market was mostly following the price pattern set by Bitcoin, this seems to have changed. Bitcoin after successfully breaching the $8,250 mark, went on to hit $8,300 and at the time of writing this has crossed over $8,400. This is a new high since June 03, when prices were rallying in the highs of $8,500. Although the move has been highly welcomed, what is surprising is that altcoins are not following suit. In the past, a rally from the oldest cryptocurrency has inspired other cryptocurrencies to rally too. This time, while Bitcoin has been rallying, most altcoins have been dropping. Potentially bringing back the altcoin ‘winter’
Analyst Says Binance Is To Blame
One analyst believes that this is being caused by Binance exchange which has recently announced that it will be launching in the U.S. The exchange is reportedly going to partner with BAM Trading Services Inc to launch Binance U.S. An announcement from the company explains that U.S residents will be barred from its main platform beginning Sept 12. Alex Kruger has been connecting this recent move to the altcoin drop. This move will see two of the largest exchanges (Binance and Coinbase) go head to head.
According to Kruger, Binance will be moving approximately 25 to 30% (U.S citizens) of its users from the main platform. The analyst predicts cryptocurrencies that will be on the main platform but not on the U.S exchange will witness huge drops. On the other hand, top cryptocurrencies like Bitcoin which are guaranteed a place on the U.S exchange will continue enjoying big gains.
He also added that many of U.S residents holding Binance coin (Binance exchange’s native currency) and were concerned that it will not be available on the U.S exchange would begin selling and buying Bitcoin. This would see Binance coin rapidly fall and Bitcoin climb.
In a tweet he stated:
“If you hold ‘small caps’ in Binance, and are concerned about the news, maybe because you are a US resident who fears getting funds stuck without KYC, or maybe because you think ahead, yet want crypto exposure, what do you do?”
“Sell everything, buy $BTC (or $ETH), exit Binance.”