Cointelegraph Team
Cointelegraph
Bitcoin (BTC $17,007) fell below $17,000 on Dec. 16 as traders warned of overreaction to “FUD” involving exchange Binance and others.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance “FUD” fuels bearish BTC moves
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it put in multi-day lows of $16,928 on Bitstamp.
The pair retraced its entire run to one-month highs courtesy of the latest macroeconomic data and policy update from the United States.
Amid ongoing concerns over the solvency of largest global exchange Binance, market sentiment showed what traders argued was a clear case of cold feet.
The evidence, they suggested, simply did not stack up in bears’ favor.
“The craziest rumours and FUD going around on literally everybody in the crypto exchange business,” Michaël van de Poppe, founder and CEO of trading firm Eight, tweeted on the day.
A further post expanded on who those players are:
Apparently the consensus is that Tether, Binance, DCG are all going to fall. Potentially even Michael Saylor. Clear, got it.
Fellow trader and analyst Crypto Ed sounded equally skeptical, drawing attention to Bitcoin’s copycat comedown in line with U.S. equities the day prior.
“Interesting to see everyone suddenly so bearish on BTC as if it's solely acting so weak. SPX is doing exactly the same, maybe even weaker,” he told followers, querying whether the “Binance fud” really had a role to play.
BTC/USD vs. S&P 500 % change chart. Source: TradingView
Research: Binance reserves data “makes sense”
In examination of Binance’s previous proof of reserves statement, meanwhile, on-chain analytics platform CryptoQuant likewise found little evidence of foul play.
“To evaluate the information contained in Binance's Proof-of-Reserves report, we compared the liabilities presented by Binance in the report to the on-chain metric data we have at CryptoQuant regarding Binance’s BTC Reserves (our estimation of the deposits made by Binance's customers),” it explained in a blog post on Dec. 15:
We discovered that the liabilities stated by Binance are highly similar to our assessment (99%).
It added that the data Binance supplied about its liabilities “makes sense.”
No amount of reassurance was enough to console BTC price action on the day, however, with $17,000 barely holding at the time of writing.
Popular trader Crypto Tony thus announced entry of “the next wave down for the bears,” amid ongoing predictions of a cycle low at $12,000 or under.
“BTC all as expected ... if we consolidate for a while above 16900 I will open a long .... still patient for now,” fellow trader Elizy wrote in a fresh update.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.