Binance, one of the world's largest cryptocurrency exchanges, has delivered a $1 billion blow to crypto bears by announcing the conversion of the remaining funds from its Industry Recovery Initiative from BUSD stablecoin to native cryptocurrencies like BTC, BNB and ETH.
The announcement was made by Binance CEO Changpeng Zhao on Twitter, who also stated that some fund movements would occur on-chain, ensuring transparency.
This move by Binance is a clear indication of the exchange's belief in the future growth of the cryptocurrency market.
The announcement energized the cryptocurrency community, with many predicting that this move could be the catalyst for a sudden surge in the prices of BTC, ETH and BNB.
Ki Young Ju, CEO of on-chain data provider CryptoQuant, took to Twitter to opine that the announcement would result in $1 billion buying pressure for these cryptocurrencies.Binance's decision comes amid mounting struggles for U.S.-based cryptocurrency businesses as banking challenges continue to pose a significant obstacle.
Signature Bank, a New York-based financial institution that recently made a bid to attract cryptocurrency deposits, was forced to shut down abruptly after regulators warned that keeping the bank open could destabilize the entire financial system, adding to the confusion and uncertainty on the market.
Tech-friendly Silicon Valley Bank and Silvergate also went underwater last week. "Silvergate, Silicon Valley and Signature all shuttered. Depositors will be made whole, but there's basically nobody left to bank crypto companies in the US," trader Scott Melker tweeted.
In the wake of these events, U.S. regulators have taken measures to bolster confidence in the country's banking system, but with interest rates set to rise and the financial system still vulnerable, investors are left grappling with perplexing uncertainty and unpredictability.