Bitcoin dips beneath $17K as ‘craziest rumors’ over Binance sink BTC value

Bitcoin (BTC) fell beneath $17,000 on Dec. 16 as merchants warned of overreaction to “FUD” involving alternate Binance and others.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Binance “FUD” fuels bearish BTC strikes

Knowledge from Cointelegraph Markets Professional and TradingView adopted BTC/USD because it put in multi-day lows of $16,928 on Bitstamp.

The pair retraced its total run to one-month highs courtesy of the newest macroeconomic information and coverage replace from the US.

Amid ongoing issues over the solvency of largest international alternate Binance, market sentiment confirmed what merchants argued was a transparent case of chilly ft.

The proof, they urged, merely didn’t stack up in bears’ favor.

“The craziest rumours and FUD going round on actually everyone within the crypto alternate enterprise,” Michaël van de Poppe, founder and CEO of buying and selling agency Eight, tweeted on the day.

An additional publish expanded on who these gamers are:

“Apparently the consensus is that Tether, Binance, DCG are all going to fall. Doubtlessly even Michael Saylor. Clear, bought it.”

Fellow dealer and analyst Crypto Ed sounded equally skeptical, drawing consideration to Bitcoin’s copycat comedown consistent with U.S. equities the day prior.

“Attention-grabbing to see everybody immediately so bearish on BTC as if it is solely appearing so weak. SPX is doing precisely the identical, perhaps even weaker,” he informed followers, querying whether or not the “Binance fud” actually had a task to play.

BTC/USD vs. S&P 500 % change chart. Supply: TradingView

Analysis: Binance reserves information “is smart”

In examination of Binance’s earlier proof of reserves assertion, in the meantime, on-chain analytics platform CryptoQuant likewise discovered little proof of foul play.

Associated: Why is the crypto market down as we speak?

“To guage the knowledge contained in Binance’s Proof-of-Reserves report, we in contrast the liabilities introduced by Binance within the report back to the on-chain metric information we’ve got at CryptoQuant concerning Binance’s BTC Reserves (our estimation of the deposits made by Binance’s clients),” it defined in a weblog publish on Dec. 15:

“We found that the liabilities said by Binance are extremely much like our evaluation (99%).”

It added that the information Binance provided about its liabilities “is smart.”

No quantity of reassurance was sufficient to console BTC value motion on the day, nonetheless, with $17,000 barely holding on the time of writing.

Fashionable dealer Crypto Tony thus introduced entry of “the following wave down for the bears,” amid ongoing predictions of a cycle low at $12,000 or beneath.

“BTC all as anticipated … if we consolidate for some time above 16900 I’ll open a protracted …. nonetheless affected person for now,” fellow dealer Elizy wrote in a contemporary replace.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.