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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Market update: Bitcoin holds the high ground, as Binance deals with client exodus

Bitcoin approaches $38k, eyes $40k close. Binance sees $1bn withdrawal post-CEO exit, BNB struggles near lows.

Source: Bloomberg

Bitcoin hovers near $38k but struggles for sustained breakthrough. A recent CoinShares report suggests its stability relates to increased institutional investment.

The market witnesses a notable surge, marking the 9th consecutive week of positive inflows. Anticipation of the spot Bitcoin ETF and next year's halving event likely fuels this demand. Bitcoin records $312 million inflows last week, contributing to a yearly total of $1.5 billion. This suggests growing investor confidence.

Over the last 18 months, there's been a significant shift, with Hodlers increasing exponentially, further underlining positive sentiment in the cryptocurrency landscape.

Crypto coins chart

Source: TradingView

Binance faces client exodus following Zhao’s exit

Binance grapples with the aftermath of CEO Changpeng Zhao's exit, causing turbulence in the crypto exchange sphere. Despite a Q4 crypto renaissance, the exchange faces uncertainties.

Concerns arise over Binance's sustainability following $4.3 billion fines, leading to approximately $1 billion outflows post-Zhao's departure. Continued outflows pose a substantial risk, warranting close monitoring.

The BNB token encounters challenges, dropping 8% after Zhao's announcement. The removal of zero-fee crypto trading has also eroded Binance's market share. While not facing the same charges as FTX, industry watchers ponder if Binance is on the brink of a decline.

BNB daily chart

Source: TradingView

Risk events ahead

There remains some risk from a USD perspective this week, which could impact the US dollar and thus Bitcoin. We witnessed a bit of that today with Fed policymakers' comments received as a tad dovish - which has seen the US dollar selloff gain further traction.

Market participants appeared buoyed by comments from Fed policymaker, Waller in particular who stated that: “If inflation consistently declines, there is no reason to insist that rates remain really high.” If market continue to perceive Fed comments and US data in a dovish light this week, and the US dollar selloff continues, this could help Bitcoin achieve a clean break above the $38k mark.

US economic calendar

Source: DailyFX

Bitcoin technical analysis

From a technical standpoint, BTCUSD is interesting as it hovers just below the $38k mark. Nothing much has changed from a technical standpoint done previously. The 38,000 mark remains a stumbling block to further upside, and I fear the longer we stall at this level, the greater the likelihood for a selloff becomes.

Resistance levels:

  • 38000
  • 40000
  • 42500

Support levels:

  • 36200
  • 35500-35200
  • 34177
Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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