Binance is banned in the UK and the company is no longer given right to keep operating. Considering the market domination of market, any negative news is expected to have side effects on the crypto market. So far, we have witnessed that news has significant impact on the market and, as usual, we expect to see some red times with the recent case. Yet, it is not happening.

There are several reasons why the market does not react to this ban. Let's talk about these:

Opt1. No more weakhands to dump?

This is one of the possibilities that we may consider bullish. During a bear market, the market may not find any more sellers to test lower prices or, in other words, the buyers by far outperform the sellers after a while.

If the case is like that, I can interpret it as a bullish sign or, at least, a good sign to stay voliatile until the next hype. This possibility is quite encouraging but it's not enough to make an investment decision to acknowledge that the bear market conditions are likely to end up soon.

Opt2. The FUD has not spread enough to have an impact

I do not think this option has high probability as I read the news on 2 well known platforms which are Bloomberg and Zerohedge.

Source

In addition to news, there are lots of tweets by crypto influencers over the cease of operation in the UK. So, I disregard this option.

Opt3. The market/volume in the UK is not crucial for Crypto market

This might be the other case as the interest is more in the volume from USA and Asia. Considering the loss of volume, it's bearable but the fact that the restriction is administered by FCA is worth considering.

Mining restrictions from China and Iran had masive impact on the market since these countries are hosting several miners for the blockchain. Yet, due to the volume of the UK market, the news has not had an affect yet.

Opt4. Bans get normal in Crypto

Some people may support this idea but, for sure, it does not have strong narrative behind it. Yes, ban from China is quite popular in crypto but the mass-adoption require regulation-friendly ecosystem of crypto.

I do not give credits to this option. More or less, the UK's regulations will be a model for the other countries.

Opt5. Binance does Binance-things

To be honest, it's one of the options that I can support 😅 Just compare Coinbase and Binance and change the brand name in the news. Would market react in the same way? I do not think so.

Binance has a unique place in the crypto ecosystem. Even though many people do not have problems with trusting Binance, they are also aware of the fact that Binance is the best centralized platform to keep your data and assets secure 😏

Knowing that Binance may go through such issues all around the world, the market may not consider this as a serious issue. That's just a possibility but I give more credits to this possibility than the former three options.

W H Y ?

Why do not we see at least reddish market though the FUD is strong enough? The moment I saw the news, I said 18K is loading. Yet, I'm surprised with the market conditions in these days.

What do you think the reason is? Enlighten us ^^

Posted Using LeoFinance ^Beta