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Bitcoin, Ethereum, Dogecoin Move Up In Defiance Of Binance’s Outflow Troubles — Analyst Says This Is What Will It Take For BTC Rally To Continue

Major coins remained firmly in the green despite the largest spot exchange facing a run on deposits on Tuesday. The global cryptocurrency market cap rose 2.1% to $869.5 billion at 7:19 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin (CRYPTO: BTC) 3.4% 4.1% $17,791.93
Ethereum (CRYPTO: ETH) 3.7% 4.1% $1,322.10
Dogecoin (CRYPTO: DOGE) 0.1% -8.9% $0.09
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Toncoin (STX) +11.6% $2.34
OKB (OKB) +8.6% $22.96
Fantom (FTM) +6.2% ​​$0.25

See Also: 4 Best Binance Alternatives In 2022

Why It Matters: On Tuesday, Binance temporarily stopped USD Coin (USDC) withdrawals as it conducted a “token swap.” This happened as investors were spooked about the Changpeng Zhao-led exchange’s stability.

Binance's Netflow over the last seven days was negative $3.7 billion, according to data analytics platform Nansen. An outflow of $8.8 billion was registered in the period while the inflow was at $5.1 billion.

Zhao said that users who wish to withdraw money from Binance are looking to convert the stablecoin PAX (USDP) and Binance’s BUSD (BUSD) into USDC.

Meanwhile, stablecoin Tether (USDT) revealed that it helped Binance conduct a chain swap in which 3 billion USDT will be transferred from the Tron (TRX) network to the Ethereum (ETH) network.

The transaction was conducted as Binance attempted to shift USDT balances from its cold wallets on Tron to Ethereum, according to Tether CTO Paolo Ardoino.

Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX was denied bail in the Bahamas and charged by U.S. prosecutors with fraud and for violating campaign finance laws, reported Reuters.

“To the amazement of many crypto watchers, Bitcoin continues to hold the $17,000 region,” said Edward Moya, a senior market analyst with OANDA.

Bitcoin and other risk assets rose on Tuesday after headline consumer price inflation came in at 7.1% in November down from 7.7% in October. The November reading was below economists' average estimate of 7.3%. 

“The Fed might not have to take rates to 5.00% or higher and that is surprising news for stock traders. ​Fed tightening is looking like it will just need a half-point increase tomorrow and a 25bp increase in February,” said Moya, in a note seen by Benzinga.

“Bitcoin extended its rally after a key pricing report showed the disinflation trend continues. Treasury yields tumbled alongside the dollar, which is great news for cryptos. Bitcoin is getting close to the $18,000 level and that rally could continue if risk appetite remains strong post-Fed,” according to the OANDA analyst.

Michaël van de Poppe said the “playing field is relatively simple” for Bitcoin. The trader said that investors would like to see the apex coin break resistance at the $17,800 mark. If that happens Bitcoin will test the $18,200 level. He said support levels for potential longs are at $17,100 and $17,400.

On Ethereum, Santiment said the second-largest coin’s “utility” has risen to its highest level since May 2021 this week. 

The market intelligence platform said that ETH “has jumped back over $1,335 for the first time in 5 weeks. It's a good sign that this spike in address activity is not coinciding with a normal [profit-taking] opportunity.”

Read Next: Bitcoin, Ethereum, Dogecoin Remain Unpopular Investment Options With Americans — Survey Says Just 10% Invest In Crypto

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