Binance Gains Edge Over US SEC In Legal Dispute, BTC Price Could Rally to $30,000

22. Sep 2023 Posted by Akolkar B on News

The ongoing legal dispute between Binance and the U.S. SEC took an unexpected turn on September 18. Magistrate Judge Zia Faruqui rejected the SEC's request for access to Binance.US's systems, instead suggesting that the SEC should submit specific discovery requests.

While this decision temporarily delayed the need for Binance to demonstrate the separation between Binance.US's custody solution and Binance International, the market reacted positively. Judge Faruqui scheduled a follow-up hearing for October 12 and requested status reports from the involved parties.

Although it may seem like a setback for the SEC for now, it could potentially pose increased risks for Binance. Binance CEO Changpeng "CZ" Zhao maintains that Binance.US has never used Binance's global custody solutions, despite a document from Binance.US on September 15 suggesting otherwise. However, the SEC has yet to provide clear evidence of Binance attempting to mislead the court.

Bitcoin (BTC) has rallied to its highest level in three weeks, surpassing the $27,000 resistance mark. Traders are now speculating whether this surge is due to leverage or actual demand from spot buyers.

However, the BTC price has retraced considerably and is currently trading at $26,500 with a market cap of $516 billion. But analysts believe that going into the fourth-quarter, the BTC price could rally all the way to $30,000 and above.

The final quarter of the year historically showcases Bitcoin's (BTC) strongest performance, with an average return of over 35% in the past nine years.

Based on historical patterns, Bitcoin could potentially reach $37,000 by year-end. Furthermore, October stands out as a strong month, with Bitcoin experiencing positive returns in seven of the last nine years, averaging around 20%, according to the report.

Additionally, October holds potential significance due to the second deadline for bitcoin spot exchange-traded fund (ETF) filings, where the Securities and Exchange Commission (SEC) will announce its decision to approve or postpone these ETFs, following an August delay.

On the other hand, Bitcoin on-chain metrics have also been showing major strength. The Bitcoin hashrate has surged to new highs. Similarly, the total number of active addresses on the Bitcoin blockchain have also surged to new highs.