Bitcoin extends losses as BNB falls

Bitcoin extends losses as BNB falls

Time Stamp: August 16, 2023 6:36 AM
Source Node: 2215926

Bitcoin prices fell on Wednesday afternoon trade in Asia, along with all other top 10 non-stablecoin cryptocurrencies by market capitalization. Notably, BNB, the native token of the world’s largest cryptocurrency exchange Binance, added to its weekly drop after the company announced the closing of its cryptocurrency payment service Binance Connect. Investor concerns remained on edge following Fitch Ratings’ downgrade warning on Tuesday for dozens of major U.S. banks including JPMorgan. 

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Bitcoin dips; Binance faces heat

Bitcoin dropped 0.69% to US$29,160 in the 24 hours to 4 p.m. in Hong Kong, bringing its weekly losses to 2.18%, according to CoinMarketCap data. Bitcoin has been trading below US$30,000 since last Wednesday. The world’s biggest cryptocurrency’s trading volume gained 8.71%, but its market capitalization lost 0.84% to US$567.23 billion in the past 24 hours.

“Bitcoin’s earlier reputation as a highly volatile asset attracted traders who thrived on rapid price swings. With the decrease in volatility, such opportunities for substantial short-term gains have become less common,” said Nigel Green, founder and chief executive officer of financial management group deVere, in an emailed statement on Monday. 

“For investors who thrive on volatility, the calmer waters of the Bitcoin market can feel limiting. They must adapt their strategies to the new normal, focusing on longer-term trends and holding positions for extended periods,” Green added. 

BNB, the native token of the largest crypto exchange Binance, fell 1.92% to US$234.66, logging a 4.17% weekly decline. Binance said it will shut down its cryptocurrency payment service Binance Connect on Wednesday, due to “changing market and user needs.”

Binance filed a protective court order against the U.S. Securities and Exchange Commission (SEC) on Monday, seeking to restrict the agency’s “overbroad” requests for information. The SEC sued Binance, its U.S. platform, and Chief Executive Officer Changpeng Zhao in June for alleged breach of securities laws.

The total crypto market capitalization fell 1.31% to US$1.16 trillion, while market volume climbed 22.48% to US$32.08 billion. 

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