This year has seen Bitcoin (BTC) trading flourish on crypto markets as the leading cryptocurrency continues to rise.
The same cannot be said for the altcoin market, which has seen several of the available tokens struggle to match Bitcoin’s trajectory. Some altcoins have lost value over the course of the year due to a variety of reasons.
Although altcoins have generally been struggling this year, Binance is one of two altcoins that have enjoyed a stellar 2019.
The firm’s coin made significant gains over the first half of the year. There has been a lot of positive news around Binance, and this has translated to gains for its token.
The platform launched margin trading and debuted a DEX, moves that paid dividends as investor interest in Binance increased significantly. Binance Coin, the native token of Binance, saw its price soar on crypto exchanges due to high demand.
Binance Coin could lose a significant amount of its gains
The work that went into Binance’s gains during the first half of 2019 could be undone, and the crypto asset could lose up to 40% of its gains, according to analysts. Binance is in the process of closing its business to US investors as the firm seeks to stay on the right side of regulations.
The American crypto community makes a large chunk of crypto traders across the world, and any platform that loses this client base falls into a precarious position. American account holders will no longer be able to access Binance in two days time.
Binance has created a US-centric version of its exchange platform to cater to American traders. The firm announced that they are currently considering Bitcoin and 29 altcoins for listing on the US focused platform.
However, it is still unclear whether Binance Coin will be accepted as part of the tokens on the new exchange. Some tokens are classified as securities in the US and according to the country’s regulations, they cannot be listed on crypto exchanges.
The uncertainty around Binance Coin may influence a major price drop for the token. The exchange platform needs to find a way to clear the air and reassure investors that the token is still as good as it was a few months back if the coin is to maintain the run it’s been on.
A crypto analyst said that if Binance does not find the support it requires at its current price, the price of Binance Coin could drop by 40%.
If you are holding @cz_binance's coin, you sure as hell want to see a bounce from diagonal support + 19.5k area.
Failure to do so, next support is nearly 40% lower 🔎
Exchange will close access to USA accounts in 2 days – curious to see this play out pic.twitter.com/ieX2wSoZyQ
— TEDDY ⛓️🌐 (@teddycleps) September 10, 2019
Altcoins have had a difficult year, mainly due to regulatory pressure that has resulted in several investors selling off their altcoin holdings.
Many of the altcoins do not comply with regulatory requirements and as authorities tighten restrictions on the crypto industry, investors are forced to let go of these tokens and buy Bitcoin which is more aligned with regulatory requirements.