As the news came out of Changpeng Zhao, the CEO of Binance, resigning as part of a massive settlement with the United States Securities and Exchange Commission (SEC), it has only become the icing on the cake in one of the worst slaughters on the cryptocurrency market this year.
Indeed, the market capitalization of the cryptocurrency sector has dropped by over 2% in the last 24 hours, having lost $30 billion as it declined from $1.41 trillion to $1.38 trillion, according to the latest data retrieved from the crypto analytics platform CoinMarketCap.
Meanwhile, altcoins alone had already seen shrinking market caps before the Binance shocker, albeit some more so than others in one of the “bloodiest days of 2023,” as per the most recent information shared by crypto on-chain and social metrics tool Santiment in an X post published on November 22.
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This was particularly and expectedly evident in the example of Binance Coin (BNB), which declined nearly 10% in one day following the news about the crypto exchange, as some traders, interestingly, started swapping their BNB holdings for FTX Token (FTT), as data shows.
At the same time, social volume changes have shown some calls to ‘buy the dip,’ while others revealed major ‘fear, uncertainty, doubt’ (FUD) as “one of the biggest retraces of the year” occurred, which the platform’s team said was not a direct result of Binance reports as the main culprit.
In fact, as Santiment said earlier, altcoins have started to witness excess volatility and declining market caps even before the latest news, at the same time opening ‘buy the dip’ chances depending on how much FUD it caused, right on time before some of them explode in 2024.
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