BNB’s open interest surged by almost $30 million within the initial nine hours of June 5
Timing is crucial in trading, and it seems that certain traders executed strategically timed sell orders for BNB tokens, anticipating the significant SEC crackdown on crypto exchange Binance on June 5.
According to data from TradingView, the BNB/USDT order book on Binance experienced a notable surge in aggregated sell orders at 11:45 p.m. UTC on June 4 and 1:45 a.m. UTC on June 5.
Approximately 125,000 BNB, valued at $37 million, were involved in these sell orders, coinciding with the period leading up to the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against Binance.
Coinalyze reported that BNB’s open interest, representing the cumulative value of derivative contracts held by investors, surged by almost $30 million within the initial nine hours of June 5.
This notable increase occurred prior to the 11:15 am announcement by the SEC, which alleged that Binance had commingled customer funds and operated an unregistered securities exchange.
The surge in open interest signifies the entry of new traders who initiated fresh positions in the market, rather than closing existing ones.
Following the SEC’s crackdown on Binance, which targeted BNB as a security, the price of BNB experienced a significant decline. Within one hour of the announcement, the price plummeted by over 9%, dropping from $300 to $272 on Monday.
Traders in the cryptocurrency market who speculated on the price decline of Binance’s BNB token before 11:15 am on June 5 have witnessed substantial profits as a result of the subsequent price movement.
The unveiling of the SEC’s lawsuit against the leading crypto exchange, known for its significant trading volume, triggered a notable price action for BNB, allowing these traders to capitalize on their predictions.
Despite a request for comment, an SEC spokesperson remained unresponsive regarding the trades executed prior to the SEC lawsuits against the crypto exchange.
Also Read: Binance.US will suspend USD payment channels by June 13
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
