Bitcoin soared to its highest level in three weeks, surpassing the $27,000 resistance
The ongoing legal fight between the Binance crypto currency exchange and the U.S. Securities and Exchange Commission (SEC) took a surprising turn on September 18.
Magistrate Judge Zia M. Faruqui turned down the Securities and Exchange Commission’s plea for access to Binance.US’s systems. Instead, the Federal Magistrate proposed that the SEC should formulate specific discovery requests.
While this decision only temporarily delayed the need for Binance to demonstrate the separation between Binance.US’s custody solution and Binance International, the market reacted positively.
Bitcoin soared to its highest level in three weeks, surpassing the $27,000 resistance. Traders are now wondering whether the rally has been supported by leverage or genuine spot buying demand.
This is where metrics related to Bitcoin derivatives could possibly provide the solution.
Judge Faruqui scheduled a follow-up hearing for October 12 and called upon the involved parties to submit a status report before the event, as reported by Yahoo Finance. What might have appeared like a setback for the Securities and Exchange Commission, at least for the time being, could possibly raise the risks for Binance.
Binance’s founder and Chief Executive Officer, Changpeng Zhao, remains steadfast in asserting that Binance.US has never used Binance International’s custody solutions, in spite of a document from Binance.US on September 15 indicating otherwise. Nonetheless, the Securities and Exchange Commission has yet to produce clear proof of Binance trying to mislead the court.
Irrespective of the current evidence, or more precisely, the absence of reliable information provided by Binance, the outlook for Bitcoin bulls has considerably improved for the next three weeks, with no expected changes until the forthcoming court hearing.
