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BNB price rallies on news of DOJ-Binance settlement

BNB price rallies on news of DOJ-Binance settlement

BNB’s (BNB) price breakout to a 5-month high at $271.90 comes as reporting from the Wall Street Journal highlighted the United States Department of Justice’s plan to announce a $4.3 billion dollar settlement with Binance to end its case. WSJ also reported that Binance founder Changpeng “CZ” Zhao has agreed to step down as CEO of the crypto exchange 

While the exact details of the settlement remain unclear until the Nov. 21 press conference at 3 pm ET, crypto market participants appear to perceive the end of the Binance legal saga with the Commodity Futures Trading Commission, United States Securities and Exchange Commission, and DOJ as a positive outcome with potential bullish ramifications the crypto market.

Historically, crypto markets react negatively to enforcement actions and the threat of new regulations, but data from Coinglass shows BNB volumes, open interest and options volume surging over the past 24 hours.

BNB derivatives data. Source: Coinglass

Related:BNB pops after report that DOJ wants $4B settlement with Binance

While BNB price did hit a 5-month high at $271.90 on Nov. 21, the move was accompanied by a surge in liquidations.

BNB/USDT daily chart. Source: Velo

At the time of writing BNB price is retracing a majority of its intra-day gains, perhaps a sign that the price action reflected the age-old buy the rumor and sell on the news strategy that remains prevalent throughout the crypto sector.