Bitcoin (BTC) price fell 1.5% in a short period of time, dropping from $26,200 to $25,800 minutes ago.
The sudden drop coincided with the announcement of Binance, the world's largest cryptocurrency exchange by trading volume, that it was withdrawing its services from Canada. This is presumed to be the main reason behind the decline.
As Bitcoinsistemi.com reported, Binance cited regulatory pressures in the country as the reason for the withdrawal.
Another possible factor behind the decline in BTC price could be the strength of the rising US dollar against other major currencies. The dollar index (DXY), which measures the dollar's value against a basket of six currencies, rose 0.60% today and came into a key resistance zone.
A stronger dollar tends to have a negative impact on Bitcoin and other cryptocurrencies, as it reduces their appeal as alternative store of value and makes them more expensive for foreign investors.
Binance announced on Twitter its plans to cease trading in Canada:
“Sadly, we are announcing today that Binance will join other leading crypto businesses in proactively withdrawing from the Canadian market. Although a small market, it had sentimental value to us as the hometown of our founder. We had high hopes for the rest of the Canadian blockchain industry.”
*Not investment advice.
