The long-awaited ban for Americans on Binance, the leading cryptocurrency exchange by trading volume, is finally almost here. The block is scheduled to go into effect tomorrow (Sept 12).
An event that was allegedly supposed to be catastrophic for the entire cryptocurrency industry may soon pass on like any other. The traditional Binance exchange is officially closing its doors to American customers tomorrow, a move that many expected would crash altcoins further and perhaps destabilize the market for months.
Market Shrugs It Off
Maybe the worst is yet to come, but the market has been unexpectedly quiet. Despite Bitcoin dropping below the $10,000 price point briefly yesterday, it quickly recovered and is sitting around $10,050 at the time of writing. Similarly, altcoins have been stagnant for a week with little to no price movements other than a slow bleed.
Could it be that the Binance ban is already ‘priced in?’
It could also be that sell pressure altcoins have been experiencing for the past two months was partly caused by the looming effect of this ban. It has undoubtedly applied downward price pressure to most altcoins, especially those which were not on Binance’s shortlist to be added to Binance USA.
A Difficult Time for Binance
We could still see some unexpected market turbulence, but the real questions we should be asking have to do with Binance itself, not the market.
The cryptocurrency market will surely survive, but will Binance be able to rebound successfully and regain most of its lost American traffic? Has the exchange already ‘peaked?’ Let’s not forget that the U.S. makes up a large percentage of Binance’s traffic. We have already begun to see Americans flocking to alternatives, like KuCoin, instead of opting for the mandatory KYC procedures.
Altogether, Binance USA will be a tough sell for many American traders who are used to their previous experience — and in this fast-changing market, losing so much traffic could easily undermine the exchange’s position as a market leader.
There are also concerns over Binance Coin (BNB) possibly being regarded as a security token, and whether or not it will be listed on Binance USA upon launch. The market has reacted accordingly, as BNB was once trading as high as $39 in mid-June to currently now at $22.
For the time being, it seems that the market’s decline will likely continue until the Binance ban situation is further sorted out.
Do you believe that the Binance ban will cause a stagnant market for the next month or so? Let us know your thoughts below in the comments.