"It didn't fall much anywhere, maybe investors think the Binance problem is not that big."
The price of the king of cryptocurrency Bitcoin (BTC) which saw a fall to $35,643 on November 21, 2023 finally managed to climb back to break once again its strong resistance zone at $37,846.
There is no denying that BTC was in a state of uncertainty when Binance CEO Changpeng Zhao (CZ) pleaded guilty, but the price recovered after investors took some time to digest it.
Explained further, the entire crypto market is starting to realize that Binance doesn't have any massive fund withdrawals like FTX did when its liquidity crisis became public.
Binance's reserves in BTC are down just 17% from their all-time high compared to FTX reserves which have plummeted 99.9% as the crypto exchange faces its November 2022 crash.
In addition, the increase in the price of BTC was also driven by some analysts of the digital asset who increasingly believe that the settlement between Binance and the Department of Justice (DOJ) could lead to the approval of spot BTC ETFs in the near future.
It is understood that the spot approval of the BTC ETF could not only generate $600 billion in new demand but also lead to an increase of $1 trillion in BTC market capitalization plus Galaxy Digital predicts that the price of BTC could rise by 74% in the first year after the launch of the product.
Among the other reasons that the price of BTC was able to rise again is the follow-up from institutional investors who started using funds in crypto including BTC although some may be waiting for increased liquidity through approved ETFs.
Through observation on the price chart, BTC should break through $37,856 first to continue rising higher but if it continues to fail then the digital asset can slip back to $35,936 followed by $31,087.
As of this writing, the price of BTC has surged by 3.43% to $37,378 in the last 24 hours with a market cap of $730 billion but is still down 1.05% over the past week.
