K33 Research reports that Bitcoin and Ethereum have shown strong dependency over the past week after the U.S. Department of Justice reached a settlement with cryptocurrency exchange Binance on November 21. Senior analyst Vetle Lunde and vice president Anders Helseth said that while comparisons have been made to FTX’s collapse, “Binance was operating illegally in the United States and they will no longer be able to do so, but the settlement has nothing to do with mishandling customer funds” and that “ There will be no future contagious effects."
Lunde and Helseth believe that although Binance has lost market share this year and recorded more than $1 billion in outflows in the 24 hours after being fined $4.3 billion, Binance will not disappear anytime soon. “Nevertheless, Binance’s strong user base shows that Binance remains a cornerstone of the crypto market structure as we enter 2024,”