JPMorgan: BNB to win in the long term
Binance got hit with a hefty $4.3 billion fine from the US Department of Justice last week. They’re shutting down their US division and agreeing to have an independent observer at their global headquarters for three years to make sure they follow US and international laws.
Before the agreement, market participants were cautious and withdrew their funds. As a result, Binance’s spot market share dropped from 57% in February to 32% now.
The lawsuit, losing the US market and the decline in market share caused BNB to fall by 6% in 2023, while Bitcoin more than doubled.
However, the settlement of the lawsuit provides clarity: while the fine is significant, Binance won’t face charges that could result in bankruptcy.
JPMorgan analysts wrote in a note to investors that Binance’s recent market share loss “should be contained going forward and perhaps partially reversed once the implications from the settlement on Binance’s operations and business model become clearer”.
Traders are already opening mostly long positions in the derivatives market, leading to higher funding rates and three-month highs in open interest.
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