Binance has just announced major changes to its no-fee bitcoin trading program. Enough to cause a real storm on the crypto market, weakened by an uncertain global economic context.
A Binance decision that raises fears of the worst
All eyes are on Binance over the threat of liquidation or suspension of SEPA withdrawals. Just as a living organism breathes despite obstacles, Binance continues its trajectory.
On August 24, Binance revealed the end of free bitcoin trading against the stablecoin TUSD from September 7. If fees for makers remain non-existent, takers will now be subject to fees. A difficult twist for traders who used to enjoy a complete waiver of transaction fees.
This change in policy is not trivial. In March 2022, a similar move by Binance resulted in a 90% drop in BTC trading volumes. Enough to cause massive downward pressure on the price.
The risk of another crypto crash
Observers are therefore worried about this surprise announcement. Especially since BTC/TUSD and BTC/USDT dominate trading volumes, with no less than 18% of the total. The switch to the stablecoin FDUSD, whose capitalization amounts to only $324 million, portends a drastic drop in transactions.
This forced transition to a minor asset suggests another drastic drop in transactions. And so, a potential wave of bitcoin selling and increased downside pressure. Enough to weaken a crypto market that has already been battered for several weeks.
It is difficult to predict the real impact of this change in orientation. Admittedly, Binance regularly causes tremors on the cryptosphere. But the current context, between galloping inflation and recession, makes any projection risky.
One certainty remains, however: the next few months promise to be turbulent for the leader in cryptocurrencies. Between technological optimism and economic fears, bitcoin is navigating troubled waters.
Binance remains a juggernaut whose every decision causes waves. Its repositioning on BTC trading promises an eventful end to the year. Investors hold their breath, expectantly, watching for the slightest sign of a storm. The crypto market is about to enter a zone of strong turbulence. However, this does not put off developers who offer innovative solutions such as Sidechains.
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