KuCoin stabilizes BTC and other cryptos amid volatility
KuCoin and its founders were recently charged with major violations of money laundering. Things were expected to take a downturn since then, despite the assurance from the team that nothing would change. Now, two sides have come to the surface. One pertains to Bitcoin, and the other pertains to Ether plus stablecoins. Bitcoin remains stable on the network, but ETH and stablecoins are not in the same position.
Bitcoin reserves on the network have grown by 4%, adding 250 BTC to the ecosystem. Reserves for ETH and stablecoins are down by 17% and 21%, respectively. This reflects a rough withdrawal of 20,000 ETH and $260 million worth of stablecoins. Analysts believe that this is nothing but the dynamic flow of the market, which has little to do with what has happened with KuCoin. This supposition is supported by the fact that the platform’s solvency appears to be in good standing.
Mixed trends continue to arise as users take a call about whether to retain their holdings or withdraw them for one of many reasons.
Bitcoin could later take a hit, though. Speculations making the rounds in the market claim that a price correction is around the corner. It will happen when the token hits ~$73,000. A predicted fall is hard to gather at the moment, but a rebound can be expected by the middle of this year, which is 2024. Demand from whales and institutions could be a major driver.
That said, BTC is above $70,000 at the time of drafting this article. The current value of ~$70,025 reflects a slip in the last 24 hours, but that is still a surge of ~4% in the last 7 days. It is only safe to assume that Bitcoin is aiming to test the support level of $70,000 before taking a jump to $100,000.
As for KuCoin, the platform is said to be navigating choppy waters. Recently, KuCoin faced charges for major violations of US money laundering laws. The founders, Chun Gan, and Ke Tang, have been charged with operating the company without following the basic protocols of anti-money laundering.
The US Attorney in the Southern District of New York detailed case reports that indicated the platform may have permitted the movement of nearly $5 billion worth of funds. This is precisely when KuCoin vowed to normalcy, stating that its operations were working as usual with no hindrance expected to happen.
Reports about withdrawals of ETH and stablecoins from KuCoin have taken a hit on the listed value of Ether. It has been down by 1.76% in the last 24 hours, exchanging hands at $3,544.13. It further reflects only a slight increase of 0.755 in the previous seven days.
KuCoin and its founders will be tested under US law. If found guilty, the platform may see activities rise, which will not paint a brighter picture for the market.
