How does the crypto market benefit from Binance’s turbulent November?

As Binance faces major legal challenges, the crypto world braces for change, anticipating safer trading and the SEC’s nod to the first Bitcoin ETF.

November turns out to be a tumultuous month for the crypto industry. In November 2022, FTX, once the second-largest crypto exchange, collapsed dramatically, extending the bearish pressure amid a multi-month “crypto winter.”

This year, it’s the turn of Binance, the world’s largest crypto exchange, to face some serious challenges. Binance will continue to operate, but this comes at a price: CEO Changpeng “CZ” Zhao had to step down.

What happened with Binance?

At the end of November, CZ agreed to plead guilty to charges related to money laundering. He will pay a $50 million fine, while Binance will pay $4.3 billion to settle the charges and continue operations.

The crypto exchange ends investigations by the Commodities Futures Trading Commission (CFTC) and the Department of Justice (DOJ), although the Securities and Exchange Commission (SEC) can require its own investigations.

Treasury Secretary Janet Yellen said:

“The result of these agreements will be an end to company behavior that has posed risks to the U.S. financial system, U.S. citizens, and our country’s national security for too long.”

How does the market react?

While this is a major blow for Binance, many believe that the broader crypto industry will ultimately benefit from this outcome, as crypto platforms will become more regulated to avoid the same fate. Meanwhile, Binance’s direct rivals, such as Coinbase or Kraken, are now seeking to attract Binance customers.

Kraken co-founder Jesse Powell welcomed the result of the Binance investigation in an X (formerly Twitter) post, stressing that the industry could benefit from a more fair playing field.

Coinbase CEO Brian Armstrong admitted that he felt relieved and that following the rules was always the right decision for his company.

The first Bitcoin ETF might be on the horizon

Besides a more competitive environment for crypto exchanges, Binance’s settlement can finally lead to the approval of the first Bitcoin spot exchange-traded fund (ETF) by the SEC.

Previously, the SEC cited market manipulation when turning down Bitcoin ETF filings. In an X post in June, Travis Kling, chief investment officer of Ikigai Asset Management, said that Binance’s market dominance had to end before a Bitcoin ETF gets the green light.

Mike Novogratz, CEO of crypto investment firm Galaxy Digital, said the Binance settlement was “super bullish” for the industry.

Indeed, Bitcoin has broken above the $40,000 level to update the year-to-date peak following Binance’s settlement, as investors are more confident that a Bitcoin ETF is just around the corner.

Source: Cointelegraph

What does this mean for traders?

The current situation can benefit traders on all fronts. To begin, it will be a safer trading environment since centralized crypto exchanges will comply with the rules more strictly.

On top of that, crypto traders can leverage the bullish run that is taking off these days. To augment potential profits, they can use automated trading tools like the ones offered by TradeSanta. The platform enables users to automate trading on popular crypto exchanges, including Binance, Kraken, OKX, Coinbase Pro, and ByBit, among others.

Source: TradeSanta

Traders can create their own strategies or implement ready-made ones on the supported exchanges. TradeSanta also provides its own trading terminal that comes with a user-friendly interface to trade on multiple exchanges from one account and multiple tools, including TradingView signals, risk management tools and take profit targets to analyze the crypto market in real-time.

Thanks to TradeSanta’s automation features, traders can reduce stress and increase efficiency, as they don’t have to monitor the market constantly and execute manual trades. The bots can be programmed to analyze Bitcoin and altcoins and open and close positions without any human involvement. TradeSanta’s algorithms follow preselected strategies and leverage technical analysis and market sentiment to back its moves.

Following Binance’s settlement, TradeSanta users have direct access to a more compliant ecosystem of crypto exchanges while being able to leverage the current bullish market more efficiently.