Binance CEO CZ resigned, market collapsed: What’s behind?

Binance CEO Changpeng Zao admitted the charges in the case heard in the US court and Binance was sentenced to pay a penalty of 4.3 billion USD. Then came the news of Zao’s resignation.

Changpeng Zao stated in his statement that he will continue as a passive investor from now on, focusing on start-ups and working with small groups who want to get

advice.

Binance and BNB?

The market started to decline with the news. BNB, the coin of the Binance ecosystem, saw a sharp decline from 272 USD to 224 USD; It still cannot be said that it has found its bottom.

When we take a look at the recent past and future developments in the crypto markets, the ones that stand out are the altcoin and BTC rise that started in October, which gave rise to hopes that the bear market that has been going on since May 2021 is over, the Blackrock SPot ETF, which is expected to be approved in February 2024, and the upcoming BTC halving.

The RSI (Relative Strength Index) in altcoins which rose between 100 and 200%, was literally “inflated” in daily time frames, accompanied by the decline of BTC and Tether dominance and fueled by this fact and the inflow of money into altcoins. RSIs needed to cool down.

On the other hand, when we look at historical cycles, we notice that the market dipped out before the BTC halvings and the bull market started after these bottoms.

The main factor is that BTCs and altcoins are still in the hands of small investors. The approval of the Spot ETF means that cryptocurrencies will become mainstream. In the case of a mainstream asset, it seemed inevitable that an operation would be carried out to change hands of these assets in favor of large investment and financial institutions. It can be understood that this operation is behind the resignation of the court and CZ.

It seems likely that the collapse caused by CZ’s resignation in the crypto markets will not remain with the first night and the real sharp declines will come within 1-2 days. Sharper declines may occur in mid-December. Therefore, during this period, it is important for investors to stay away from leveraged transactions, not to enter spot investments from a single point, and to keep cash for declines and re-entry in order to protect their assets.

The fact that BTC and Tether dominance has fallen to their supports and the decline is accompanied by the reactions they receive from these supports reveals the fact that news shocking the markets may be more of an excuse.

Looking at the technicalities, it seems probable that a similar rise like it was in October, will start from mid-January 2024.