Key Points:
Bitcoin (BTC) price quickly fell to the $25,900 area right after Binance’s announcement to leave the Canadian market.
The reason why Binance abandoned this market is due to the tightening of new regulations.
Since March, regulatory regulations and liquidity issues have consistently dragged BTC to its lowest level.
Binance’s announcement to leave the Canadian market quickly dragged the price of Bitcoin (BTC) down to $25,900 in the short term.
the world’s largest cryptocurrency exchange has announced its departure from the Canadian market due to the uncertain regulatory environment. Binance describes the market as “uncontrollable” due to new recommendations regarding stablecoins and investor restrictions on crypto exchanges.
This immediately negatively impacted BTC’s price, causing it to plummet to $25,900 in the short term and quickly rallying to $26,800 afterward.
There are currently several issues facing the crypto market, including low liquidity, regulatory control over the industry in the US, and macroeconomic concerns.
Bitcoin is up about 59% this year, but price action remains volatile, and low liquidity exacerbates bullish and bearish moves. Liquidity has been a big problem for the crypto market since the closure of Silvergate and Signature Bank – the two main banks people often use in the crypto space.
The liquidity situation may worsen after Bloomberg reports that Jane Street and Jump Crypto, two of the largest crypto market makers, will take a step back from crypto trading in the US. as US regulators continue to push for control over this nascent industry.
In addition, scrutiny from US regulators over the crypto sector has increased since the collapse of the crypto exchange FTX last year. The crypto industry is battling with US regulators accusing the SEC and the US government of not making clear rules on the sector.
Meanwhile, the Bitcoin network has recently faced congestion, with Binance last week being forced to halt BTC withdrawals temporarily. Bitcoin transaction fees have also spiked this week, and although they are falling, they have remained high. The original Bitcoin network was not designed to handle high-volume transactions.