KuCoin maintains stability for BTC and other cryptocurrencies amidst market volatility
Following recent allegations of money laundering against KuCoin and its founders, concerns arose regarding the platform’s stability. However, it appears that there are two sides to this situation. While Bitcoin remains stable on the network, Ether and stablecoins have experienced some fluctuations.
The Bitcoin reserves on the KuCoin network have increased by 4%, adding 250 BTC to the ecosystem. On the other hand, ETH and stablecoin reserves have decreased by 17% and 21%, respectively, due to approximately 20,000 ETH and $260 million worth of stablecoins being withdrawn. Analysts attribute these fluctuations to the natural dynamics of the market rather than the situation with KuCoin, as the platform’s solvency seems unaffected.
Users are currently torn between keeping their holdings or withdrawing them for various reasons, leading to mixed trends in the market.
However, there are speculations that Bitcoin could face a price correction once it reaches around $73,000. While a predicted fall is difficult to confirm at this point, a rebound is expected in the middle of 2024, driven by increased demand from whales and institutions.
As of now, BTC’s value is above $70,000, standing at approximately $70,025 with a 4% surge in the last seven days. This suggests that Bitcoin may test the support level of $70,000 before aiming for $100,000.
Meanwhile, KuCoin is navigating through challenging circumstances. The platform recently faced charges for significant violations of US money laundering laws, and its founders, Chun Gan and Ke Tang, have been accused of operating the company without adhering to anti-money laundering protocols.
A case filed by the US Attorney in the Southern District of New York highlights suspicions that KuCoin allowed the movement of nearly $5 billion in funds. Despite these accusations, KuCoin has claimed to operate normally without any expected hindrance.
Consequently, the withdrawal of ETH and stablecoins from KuCoin has affected the listed value of Ether, which has decreased by 1.76% in the last 24 hours, reaching $3,544.13. Over the past seven days, Ether has only seen a marginal increase of 0.755%.
KuCoin and its founders will face legal tests in the US, and if found guilty, the platform’s activities may further impact the market in a negative manner.