TheCryptoUpdates
BitcoinBitcoin NewsCryptoCryptocurrency NewsEthereumGeneral NewsNews

Crypto Market Volatility: Binance Exchange Incident and the Impact on Bitcoin, Ethereum, and ETFs

Crypto Market Volatility: Binance Exchange Incident and the Impact on Bitcoin, Ethereum, and ETFs

Cryptocurrencies have always been synonymous with volatility, and crypto stocks are no exception. Recently, the entire crypto market experienced a downturn due to a single event at the Binance exchange. This incident affected everything from exchanges to individual coins, applying downward pressure across the board.

Bitcoin and Ethereum: Facing the Heat

On Monday morning, both Bitcoin (BTC-USD) and Ethereum (ETH-USD) experienced a drop in their trading values. However, they managed to recover slightly as the day progressed. Simultaneously, several crucial crypto-based exchange-traded funds (ETFs) also witnessed a decline. These ETFs included the Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK), the Bitwise Crypto Industry Innovators ETF (NYSEARCA:BITQ), and the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO).

Binance Exchange: The Trigger Behind the Market Turmoil

So what caused this massive decline? The answer lies in the actions of Binance, a prominent cryptocurrency exchange. Binance halted Bitcoin withdrawals due to an unusually high trading volume and increasing processing fees. As a result, the Bitcoin network became congested. LMAX Group market strategist Joel Kruger mentioned that there had been no “major developments” in the Bitcoin space to account for market weakness, apart from the sudden large outflow and suspended withdrawals.

Recovering from the Crypto Slump: Comparing Amplify and Bitwise ETFs

Although all the mentioned ETFs suffered losses, some showed more resilience than others. Amplify, which experienced the least decline, also presented the lowest upside potential and analyst opinion. It currently holds a “Hold” rating with a 33.92% upside potential, courtesy of its $26.17 average price target.

On the other hand, Bitwise suffered a more significant drop but offers a better rating and upside potential. It holds a “Moderate Buy” rating with a 43.21% upside potential based on an average price target of $9.01.

Related Articles

Latest Cryptocurrency Price Forecast – BTC, SNX, XRP, DOT, LTC

Yashi Mishra

Uniswap announced the integration of a new NFT Marketplace—Sudoswap

Mridul Srivastava

China Is Throwing Out The Greater Part The World’s Bitcoin Diggers

Kshitij Chitransh