Bitcoin (BTC) appeared to shed $17,000 after Wall Street opened on Dec. 16 as US stocks continued to fall.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Analyst: $240 billion ‘has nothing but air underneath’
Data from Cointelegraph Markets Pro and TradingView showed fresh intraday lows of $16,743 for BTC/USD on Bitstamp.
The pair had abruptly dropped almost 3% earlier in the day, adding to losses that immediately followed one-month highs.
Ongoing concerns over the largest global exchange, Binance, permeated the mood, and these came despite CEO Changpeng Zhao’s best efforts to dispel what he dubbed “FUD.” As Cointelegraph reported, veteran crypto traders have been similarly skeptical about the credibility of the “craziest rumors” about the crypto exchange sector.
Nonetheless, markets refused to give them a break, and beyond Bitcoin, warnings mounted about the fate of Binance’s internal token, Binance Coin (BNB).
BNB/USD fell to almost $240 on the day, marking its lowest level since July.
“BNB has nothing but air under it,” acknowledged popular trader and analyst Matthew Hyland.
“As the 3rd largest unstable crypto, if it crashes here it will drag the entire crypto market down with it.”
BNB/USD 1-Day Candlestick Chart (Binance). Source: TradingView
The move impacted bearish traders’ longer-term plan, with Crypto’s Il Capo notably already demanding a bottom below $50.
Pressure around Binance itself mounted on the day when the report demonstrating the reserves was deleted by accounting firm Mazars Group, which added that it would no longer work with crypto industry clients.
Meanwhile, in an argument on Twitter, Zhang publicly mocked a post by outspoken TV personality Jim Cramer, who said he “would trust more of my money to draft kings than I do to binance.”
“Now we’re safe!” Zhang replied.
Crypto hobbles lower with US stocks
Related: Bitcoin Santa Claus Rally Unlikely, According to On-Chain and Derivatives Data
Aside from crypto, US stocks saw another poor performance at the open, with the S&P 500 down around 1.4% at the time of writing.
For Mike McGlone, senior commodities strategist at Bloomberg Intelligence, the situation wasn’t as bad as it might seem.
“A normal reversal can feel like a crash – the tendency for correlations to rise to 1:1 when the stock market falls could be a major factor for all assets in 2023, especially commodities,” he wrote in part of the commentary next to an explanatory diagram.
Annotated chart Bloomberg Commodity Spot Index vs. S&P 500. Source: Mike McGlone/Twitter
Previously, however, McGlone warned that the brand bore potential similarities to the days leading up to the 1929 Wall Street Crash.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.