In the early morning hours around 2-3 a.m. Eastern time, Binance updated its terms of service to indicate that United States users are not allowed to use Binance. Apparently, Sept. 12 is a hard deadline for when United States users will no longer be able to trade, but in the meantime, Binance says users in violation of the terms of service will be asked to furnish evidence.
This news appears to be driving the crypto market today. Collectively, U.S. users on Binance who held altcoins and stablecoins are probably trading for Bitcoin (BTC) and withdrawing their funds from the exchange. The reason Bitcoin (BTC) would be the top choice is that most crypto traders on Binance do not have wallets for all of the altcoins and tend to store them on Binance. This would lead to Bitcoin’s (BTC) price rising while the prices of altcoins decline.
Indeed, the price of Bitcoin (BTC) has pushed upwards since the Binance announcement early this morning, rising from $8,200 to $8,400. Around noon, Bitcoin (BTC) rose as high as $8,475. It appears there is strong resistance at $8,500 based on the Bitstamp order book depth chart. The $8,500 resistance is critical to watch since, if Bitcoin (BTC) breaks through it, there is a chance Bitcoin (BTC) could rally to the 2019 high and long term resistance level of $9,000.
If Bitcoin (BTC) is pushed back from resistance, there are support levels at $8,200, $7,500, and $7,000.
Other major cryptocurrencies are generally in the red today, and indeed Bitcoin’s (BTC) dominance percentage has increased from 55.1% to 56.5% over the past 24 hours.
Binance Coin (BNB) is particularly hard hit due to the Binance news with a loss of 9.1% in the past 24 hours. This is likely due to United States users dumping Binance Coin (BNB). Ethereum (ETH) is down 1.6%, Ripple (XRP) is down 1.3%, Litecoin (LTC) is down 3.4%, Bitcoin Cash (BCH) is down 2.7%, EOS is down 1.3%, Stellar (XLM) is down 3.1%, Cardano (ADA) is down 6.1%, Tron (TRX) is down 5.7%, Monero (XMR) is down 3.8%, Dash (DASH) is down 2.8%, IOTA (MIOTA) is down 5%, Cosmos (ATOM) is down 6.4%, Ethereum Classic (ETC) is down 3.6%, NEO is down 5.6%, Tezos (XTZ) is down 3.8%, and Zcash (ZEC) is down 3.2%.
The only major cryptocurrencies in the green today are Bitcoin SV (BSV) and Dogecoin (DOGE) with slight gains of 0.2% and 0.1% respectively. Notably, Bitcoin SV (BSV) and Dogecoin (DOGE) are not listed on Binance.
Despite almost all major cryptocurrencies being in the red, Bitcoin’s (BTC) gains have driven the total crypto market cap up over the past 24 hours from $261 billion to $265 billion. This is 165% above the bear market low of $100 billion in December.