#writetoearn Why Market is going Down?
š©Allegations of Illicit Transactions*
Binance faced fresh accusations claiming it processed up to $81 million in illicit funds, raising fears among traders and potentially leading to regulatory scrutiny and user withdrawals .
šOn-Chain Sell Pressure
Binanceās own exchange reserves for ETH have increased notably, matching levels seen before previous sell-offsāindicating mounting internal sell pressure that weighs on token value .
š¤ Drop in Trading Volume
Though Binance still holds ~38ā50% of global spot volume, its monthly trading volume fell by around 18% in April, dropping below $500āÆbillionāsign of reduced market activity .
š„ Macro-Economic Volatility
BNB dropped nearly 4% recently amid global trade tensions (e.g., tariffs) and broader market volatility, which overshadowed positive regulatory updates
What DOESNāT Explain It:
The SEC lawsuit dismissal (May 29, 2025) removed a major risk, but broader trade tensions and uncertainty are still suppressing BNBās recoveryāindicating the robustness of macro factors .
---
š Quick Summary Table
Factor Effect on Binance Market
Allegation of $81M illicit funds Sparks fear, potential user churn
Rising exchange reserves Indicates internal sell pressure
Lower trading volume Decreases liquidity and trader interest
Trade/Macro volatility Pressures BNB price despite legal wins
Regulatory relief Limited impact compared to macro headwinds
