Binance Connect Shuts Down Services As Crypto Market Stays Red

In a notable turn of events that sent shockwaves across the cryptocurrency community, Binance, a prominent player in the crypto space, has announced its decision to shut down its fiat-to-crypto payments platform, Binance Connect.

This unexpected move comes amidst a broader slowdown in the crypto market, attributed to underlying structural issues within the digital landscape.

Recent market fluctuations have been a rollercoaster ride, with prices experiencing swings in response to various factors. The past 24 hours witnessed a market slump, following a brief upward trend observed over the preceding 7 days, according to the latest market reports.

Within this timeframe, a staggering total of 60,786 traders found themselves in liquidation, resulting in a cumulative liquidation volume of approximately $134.86 million USD.

The most significant liquidation event occurred on the Binance platform involving the ETHUSDT trading pair, with a hefty sum of $2.34 million USD involved.

Today, a chapter comes to an end for Binance Connect, the regulated avenue for purchasing and selling cryptocurrencies affiliated with the Binance exchange.

The decision to terminate operations for @Binance_Connect, effective August 15th, stemmed from the platform’s service provider discontinuing support for card payment services. Speaking on this development, a Binance spokesperson stated:

• “Our continuous evaluation of products and services ensures the alignment of our resources with our long-term strategic objectives at Binance. Over the past six years, Binance has evolved from a mere exchange into a global blockchain ecosystem, encompassing diverse business segments. We remain agile in adapting our business strategy to cater to evolving market dynamics and user preferences.”

Launched under the name “Bifinity” on March 7, 2022, Binance Connect served as an intermediary, facilitating fiat-to-crypto transactions by bridging the gap between the cryptocurrency sphere and conventional financial systems.

Resultantly, Bitcoin’s value encountered a dip over the past 24 hours, resting at approximately $29,000. However, it’s noteworthy that Bitcoin’s dominance over alternative coins (altcoins) has substantially increased.

This rise in dominance is attributed to the ongoing downturn in most altcoins, including notables like XRP, meme-inspired coins, EOS, and Solana, which have experienced losses of up to 5%.

Not long ago, Bitcoin surged by more than $1,500, touching a multi-week high above $30,000. Despite this rally, Bitcoin’s momentum faltered, leading to a significant drop the following day.

Interestingly, the cryptocurrency demonstrated stability over the week despite limited trading activity.

Furthermore, analytical chart patterns illustrate Bitcoin’s struggle to break free from the tight trading range hovering between $29,200 and $29,500, resulting in a lack of heightened price volatility, as anticipated.

This period of price calm for Bitcoin coincides with a decline in trading volume and year-on-year volatility for Bitcoin derivatives.

The 30-day average trading volume for both Bitcoin options and futures has hit its lowest point since January 2023, totalling approximately $487.37 million and $16.7 billion, respectively.

Amidst these fluctuations, industry experts remain optimistic about Bitcoin’s prospects.

Analysts at Delphi Digital assert that a consolidation phase akin to the period between 2015 and 2017 is underway around the $30,000 mark, with indicators pointing towards a potential all-time high (ATH) for Bitcoin in Q4 2024.

In parallel news, the U.S. Securities and Exchange Commission (SEC) seems to be inching closer to greenlighting the launch of a Bitcoin Spot ETF investment vehicle after a protracted period of regulatory compliance.

In a strategic move, BlackRock, the world’s largest asset management firm, has furnished additional details to its Bitcoin ETF applications currently under SEC review.

This development has rekindled investor interest in the cryptocurrency realm both nationally and globally.

Taking a proactive stance, the company has forged a “supervisory sharing agreement” with Coinbase, a significant player in the crypto exchange arena.

This decision comes on the back of reports suggesting the SEC’s openness to considering ETF applications structured under such arrangements.

BlackRock joins the ranks of several entities awaiting regulatory approval for their crypto ETF submissions within the SEC’s domain.

Among them, ARK Invest, helmed by CEO Cathie Wood, submitted an application for an ARK 21Shares Bitcoin ETF listing in May 2023.

The company has recently faced a regulatory setback, encountering an additional 21-day delay from the SEC, providing the regulator with a three-week window to open the proposal for public input.