3 - 5 minute read
The recent news of the US Commodity Futures Trading Commission (CFTC) suing Binance and its CEO, Changpeng Zhao, for violating derivatives trading rules in the US has caused a stir in the cryptocurrency market. However, despite the negative announcement, Bitcoin on-chain data has shown no signs of fear, uncertainty, and doubt (FUD) developing among traders on the Binance exchange.
According to an analyst in a CryptoQuant post, FUD around the exchange is currently not visible in BTC on-chain data. The first relevant indicator is the exchange netflow, which measures the net amount of Bitcoin entering into or exiting the wallets of the exchange. The Bitcoin Binance netflow has had a negative value recently, meaning that investors have withdrawn a net number of coins from the platform. However, while some withdrawals have been seen, their magnitude is still relatively low.
From the chart, it’s apparent that users haven’t gone into a state of panic yet as they feel safe enough to keep their coins in the custody of Binance. The open interest, which measures the total amount of Bitcoin futures trading contracts that are open on Binance, has also remained relatively high recently, suggesting that the derivative traders have not shown any signs of FUD.
The funding rate, a measure of the periodic fee that futures contract traders are exchanging with each other, has also remained positive, showing that investors on the platform continue to be bullish about BTC. All these indicators show that traders on the platform, whether spot or derivative ones, have not shown any noticeable reaction to CFTC suing the exchange.
It’s currently unclear whether things might change in the coming days. However, traders should take note of such developments and cautiously monitor the market movements. It’s essential to remember that trading carries high risk, and it’s important to do due diligence before making any investment decisions.
The Bitcoin on-chain data has shown no signs of FUD among Binance users despite the recent lawsuit by CFTC. The indicators suggest that investors on the platform continue to be bullish about BTC, but it’s important to stay cautious and monitor the market movements. As always, traders should do their research and make informed investment decisions.