The cryptocurrency market experienced a jolt today as Changpeng "CZ" Zhao, the CEO of Binance, the world's largest cryptocurrency exchange by trading volume, stepped down from his position. This move came in the wake of a settlement with the United States Department of Justice (DOJ) over allegations that Binance facilitated funding for Hamas. Following the announcement, Binance Coin (BNB), the native cryptocurrency of the Binance platform, saw its price fall sharply to $239, with the market capitalization declining to $36.4 billion.
The departure of Zhao has instigated a significant reaction in the crypto market, with Binance Coin's daily trading volume dropping by 11.2% to $389.5 million on Tuesday. Analysts have conducted technical analysis on BNB and suggest that there could be an additional drop of about 12%. Such a decline would breach the support level at $234.6 and potentially push prices towards the lower boundary of its symmetrical triangle pattern near $200 on the weekly chart. This level has historically been a strong support zone where buyers have stepped in to drive up prices.
To fill the leadership vacuum left by Zhao, Richard Teng has been appointed as the new CEO. With Binance serving a vast user base of 150 million and managing a considerable workforce, Teng's expertise will be crucial in maintaining trust and stability within the organization.
Following the news of Zhao's resignation, Coinglass reported that $3 million in BNB long positions were liquidated quickly. Additionally, there was a significant decrease in the Perpetual Funding Rate, which dropped from 0.025% to 0.0093%, indicating that market participants might be bracing for further declines in price and liquidity relative to the spot price index.
The market is now closely watching how Teng will navigate this tumultuous period for Binance. His actions could either mitigate bearish sentiments and help stabilize BNB's market value or fail to reassure investors, potentially leading to further downward pressure on the cryptocurrency's price.
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