Binance has liquidated around $30m worth of long positions, with the exchange closing out a lot of positions without telling anyone. Sam Binance discusses the event and examines the market, which was up by approximately 1% over the 24-hour period. Meanwhile, the US GDP has been revised lower to 2.7% in Q4, which could have a negative impact on the economy. Moreover, the US SEC has objected to Binance’s bid to acquire over $1bn of assets from Voyager Digital, arguing aspects of the asset restructuring breach securities laws.
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How Binance Liquidated Traders and Revised GDP Impacts the Market
Introduction:
In the latest news in the crypto world, we have Binance liquidating a significant amount of traders, and a revision to the GDP that can impact the market. Let’s have a detailed look at what’s going on.
Binance Liquidation:
Binance just liquidated a whole country worth of traders, which is quite unusual. Typically, liquidations occur because of price action where the market falls, and people get liquidated. However, this time, things were different. Traders got liquidated because Binance closed out a lot of positions without telling anyone. They closed all positions of Australia-based traders, which resulted in some outrage from traders who felt they needed more notice. However, as per Australian regulations, Binance was required to inform these traders and close out any of their derivative positions with immediate effect.
GDP Revisions:
The latest GDP revision impacted the market to a certain degree. Initially, the fourth quarter GDP estimate was 2.9, but now it’s revised to 2.7, showing a weaker economy. However, it’s hard to tell how this news affects the market as sometimes, a low GDP number is good for the market, and other times it’s bad.
Job Market:
The latest jobless claims came in lower than expected, which is a negative sign. Ideally, we want jobless claims to come in higher to show that there’s a weakening job market. It’s hard to tell exactly what the Fed’s thinking is with so many mixed signals.
Voyager Acquisition:
Lastly, the lawyer for Voyager claims Binance’s plans to buy them are on track, but the SEC has objected to Binance’s move to acquire over 1 billion of assets belong to the defunct cryptocurrency lending firm Voyager digital. The SEC believes that some aspects of the asset restructuring plan of Binance US’s acquisition could breach Securities laws. This news might hurt investors, as a lot of people have money tied up on Voyager. We would like to see the SEC work with Binance US to try to figure out a way for them to buy and to register whatever Securities they have.
Conclusion:
In conclusion, the liquidation of traders and the GDP revisions have impacted the market to a certain degree, and it’s tricky to tell how it’s going to affect it in the long run. However, we need to keep a watchful eye on the market and keep ourselves informed with the latest news. We also recommend having your crypto somewhere else, other than a centralized exchange, like a cold storage wallet. Lastly, let the SEC work with Binance US to try to figure out a way for them to buy and to register whatever Securities they have.
