Following news that the US Department of Justice is reportedly looking for $4 billion from Binance as part of a deal that might put an end to its ongoing investigation, the price of BNB increased on Monday.
As of 1:50 p.m. in New York, BNB was trading for $254.51, up more than 5% in the previous day, according to CoinGecko. The price had increased to $258.05, the highest level since June 9.
The DOJ is looking into Binance.
As a possible settlement to its investigation into the operations of the cryptocurrency exchange, the DOJ is reportedly requesting more than $4 billion from Binance Holdings Ltd., according to a Bloomberg report published on Monday.
Based on allegations of money laundering, bank fraud, and sanctions violations, the DOJ has been looking into the biggest cryptocurrency exchange globally, according to a report by Bloomberg. According to the report, as part of the negotiations toward a resolution to the investigation, Binance CEO Changpeng Zhao may be subject to criminal charges in the United States.
By the end of the month, Bloomberg, citing people with knowledge of the situation, said that there might be an announcement about a possible investigation resolution. As per the report, a possible agreement would enable Binance to carry on with its operations and prevent a collapse that could cause substantial harm to the cryptocurrency market.
Uncertainty hampers Bitcoin
On Monday, the price of bitcoin increased 2% to $37,662. Analysts predict that the largest digital asset in the world may trade mostly flat for several weeks as the recent rally encounters macroeconomic headwinds.
According to a Bitfinex Alpha report released on Monday, bitcoin is being hindered by delays in ETF decisions and uncertainty surrounding the U.S. Federal Reserve’s next moves.
According to the report, risk-off sentiment is returning to a market that was previously thriving, and investors are stalling. This is in spite of the most recent FedWatch data, which shows that there is nearly a 98.8% chance that the US Federal Reserve will keep its target rate at its current level of 5.25% to 5.50% when it meets again on December 13.
The possibility of additional rate increases is sustaining investors’ desire for risky assets under control for the time being. In a note to The Block, Bitfinex analysts said that as investors get ready to place bets on the direction of U.S. monetary policy and reduce risk taking, the next three weeks could see bitcoin trading sideways and without a clear driver.
Headline inflation in the US has dropped.
According to Bitfinex analysts, the October decline in U.S. headline inflation from 3.7% to 3.2% should provide the Fed with sufficient leeway to maintain rate stability at its December meeting. “A halt to rate increases won’t, however, portend a shift in the Fed’s overall tightening strategy. The analysts also stated that the central bank is still cautious and prepared to change interest rates if inflation continues or rises unexpectedly.
In recent weeks, the most valuable token based on market capitalization has moved up and down near the psychologically significant $38,000 mark, but over the last day, it has returned to the mid-$37,000. The digital asset may stay in this range, according to Bitfinex analysts, “in the absence of a positive decision from the SEC regarding whether to approve the first spot bitcoin ETF in history.”
