BNB price spikes amid report of possible Binance deal with DOJ

Quick Take

  • BNB’s price increased after a report said the DOJ is seeking $4 billion to resolve its Binance probe.
  • Bitcoin could trade sideways in a stagnant range for weeks to come, analysts said.

The price of BNB +1.94% rose Monday after a report the U.S. Department of Justice is seeking $4 billion from Binance as part of a deal that could end its ongoing investigation.

BNB has increased by over 5% in the past 24 hours and was changing hands for $254.51 at 1:50 p.m. in New York, according to CoinGecko. It had surged as high as $258.05, the highest price since June 9. 

DOJ's investigation into Binance

According to a Bloomberg report on Monday, the DOJ is seeking over $4 billion from Binance Holdings Ltd. as a potential resolution to its investigation into the activities of the cryptocurrency exchange.

The DOJ has been investigating the world's largest cryptocurrency exchange over alleged money laundering, bank fraud and sanctions violations, according to the Bloomberg report. Negotiations include the possibility that Binance CEO Changpeng Zhao could face criminal charges in the U.S. as part of an agreement to resolve the probe, the report added.

Bloomberg, citing individuals familiar with the matter, reported that an announcement regarding a potential resolution to the probe could be made by the end of the month. According to the report, an agreement could allow Binance to continue operations and avoid a collapse that would bring significant damage to the cryptocurrency market.

Bitcoin hampered by uncertainty

Bitcoin rose 2% on Monday to trade at $37,662. According to analysts, the world's largest digital asset could trade mostly flat for weeks to come as its recent rally runs into macroeconomic headwinds.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Bitcoin is being hampered by uncertainty over the U.S. Federal Reserve’s next steps and ETF decision delays, according to Monday's Bitfinex Alpha report

The report said investors are stalling, with risk-off sentiment returning to a previously buoyant market. This is despite the latest indications on FedWatch that reveal an almost 98.8% probability that the U.S. central bank will maintain its target rate within the current range of 5.25% to 5.50% at its next meeting on December 13.

"The risk of further rate hikes is keeping investors’ appetite for risky assets in check for now. The next three weeks could see bitcoin trading sideways and without a certain driver, as investors prepare to make bets on the direction of U.S. monetary policy and dial-down risk taking," Bitfinex analysts said in a note sent to The Block.

U.S. headline inflation has cooled

U.S. headline inflation cooled in October from 3.7% to 3.2%, and the Bitfinex analysts said this should give the Fed enough room to hold rates steady in its December meeting. "However, a pause in rate hikes won't signal a change in the Fed's broader tightening policy. The central bank remains cautious and ready to adjust rates if inflation persists or unexpectedly increases," the analysts added.

The largest token by market capitalization has flirted with the psychologically important $38,000 level in recent weeks, but in the past 24 hours it has pulled back to the mid $37,000 range. Bitfinex analysts said the digital asset could linger in this range, "in the absence of a positive decision from the SEC about whether to allow the world’s first spot bitcoin ETF."

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].


To contact the editor of this story:
Nathan Crooks at
[email protected]