- According to a report from Morgan Stanley, 81% of Bitcoin exchange transactions during the month of February took place on a single exchange, Binance.
- Morgan Stanley concluded that Binance traders now set the daily price for BTC, adding that the growing trading volume on Binance and its influence on the Bitcoin price could significantly affect cryptocurrency market dynamics in the near future.
Little by little, digital assets are beginning to recover after having had a dizzying and highly fractured 2022 due to the closure of several companies, the crypto winter and the bankruptcy of others such as FTX that left a bad taste in the mouth of the general public, in addition to cause regulators to pay detailed attention to exchange houses and cryptocurrencies, hardening in most cases the suggestions to regulate them.
In this regard, the American financial multinational that carries out its activity as an investment bank and stockbroker, Morgan Stanley, recently disclosed that the majority of Bitcoin exchange transactions during the month of February took place on a single exchange, Binance
Binance, the big winner
Analysts from the financial institution stated through a research note on the recent rally of Bitcoin, that 81 percent of the so-called “digital gold” traded on stock markets in February, was traded in the cryptocurrency exchange company that provides a platform to trade more than 100 digital assets, Binance.
As a result, Morgan Stanley concluded that “theBinance traders now set the daily price of BTC“.
Similarly, the analysts noted that while most investors consult the company about Coinbase, they believe it is important to pay much more attention to flows on Binance, in order to better understand the markets.
Besides, They pointed out that the increasing volume of transactions on Binance and its influence on the price of Bitcoin could significantly affect the dynamics of the cryptocurrency market in the near future.
In this regard, they urged investors to closely follow the activity on Binance to get a more complete picture of the cryptocurrency landscape and make informed decisions.
“For context, after Bitcoin rallied 40% in January, the volume of BTC/USDT traded on Binance reached 38x that of the equivalent pair on Coinbase relative to just 4x in early 2022.”the analysts said.
Similarly, the analysts stated that in connection with the recent increase in the value of Bitcoin, “lThe narrative has quickly become: Weakness in the traditional banking sector results in a rise in the price of Bitcoin“.
“This is just a narrative that has reinforced itself by price action.“, they pointed out.
What is an ETF?
Exchange-traded funds, or ETFs, are one of the most widely traded financial products in international markets. These are stock-traded funds, which means they can be bought and sold just like stocks.
ETFs are hybrid financial products that combine the characteristics of an investment fund with the operation of a share, which gives them great flexibility and liquidity in the market. An example of ETFs is that They are commonly made up of baskets of securities, which means that these financial products provide the opportunity to invest in several assets at the same time.
In this way, they function as diversified portfolios that allow investors to reduce the risk and volatility of their investments, while taking advantage of growth opportunities in different markets and sectors.
ETFs share another common feature: they are traded every day when the stock markets open. However, unlike other forms of investment, it is not possible to trade these products 24 hours a day, since the markets usually close at 5:30 in the afternoon.
This means that investors need to keep an eye on ETF trading hours so that they can buy and sell at the right time and take advantage of market opportunities.
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