While Bitcoin has enjoyed a productive year so far, the Altcoin market has been quite slow. Only two out of the thousands of altcoins on the cryptocurrency market were able to outperform Bitcoin throughout the first half of 2019.
But there could be more trouble in the near future for the altcoin market, particularly Binance, as crypto analyst predicts a 40% decline if the next support levels fails.
During the first half of this year, Binance made several announcements, launched a DEX and margin trading among others. Between the consistent positive media attention and the Binance Launchpad platform for IEOs using the native crypt token of the exchange, pushing demand upwards, the altcoin known as Binance Coin’s value increased drastically as a result.
But in June, things started to go south for the so-called crypto market poster boy. Binance revealed it will soon be shutting its doors to US-based investors – a category of crypto investors that make up the majority share of the market.
The move is to comply with international financial market regulators, who don’t want the U.S citizens to trade certain crypto assets that may be deemed securities or fall under certain regulatory guidelines.
Instead, Binance will close deposits and trading for these customers, and drive them into a new US-based Binance exchange with just 29 Bitcoin and alcoins under consideration for inclusion.
The uncertain circumstances regarding the future value of Binance Coin, how it is implemented in the United States market, if at all, and several other unanswered questions persist, and it’s causing the value of Binance Coin to fall.
One crypto analysts believes the current value of Binance Coin could drop a further 40% if support doesn’t hold in BNB price charts.
The analyst wrote on Twitter, “If you are holding @cz_binance’s coin, you sure as hell want to see a bounce from diagonal support + 19.5k area. Failure to do so, next support is nearly 40% lower
Exchange will close access to USA accounts in 2 days – curious to see this play out.”
Binance Coin has been one of the strongest performers in 2019, surpassing both Bitcoin and Litecoin as the best performing crypto asset in the market. Outside these three assets, however, the rest of the altcoin market has been performing poorly.
Much of altcoins bleed out is blamed on the lack of investor willingness to take the regulatory risk related with some of the more exotic altcoins found on Binance and other platforms. There is fear that these altcoins cannot be traded in some jurisdictions, basically making them worthless to some investors.
Instead of getting caught holding permanently heavy loads, investors have been avoiding altcoins in favor of the more regulatory friendly Litecoin and Bitcoin.