Bitcoin (BTC $17,007) fell below $17,000 on Dec. 16 as traders warned of overreaction to “FUD” involving exchange Binance and others.

Bitcoin

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.

Bitcoin

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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

More Bitcoin News
Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.

More Cardano News
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

More Cryptocurrencies News
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.

More Bitcoin News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP