Bitcoin traders remain cautious as Binance’s “FUD” triggers BTC price action too bearish.
fell below $17,000 on Dec. 16 as traders warned of an overreaction to “FUD” involving Binance exchange and others.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: Trade View
Binance “FUD” fuels bearish BTC moves
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit multi-day lows of $16,928 on Bitstamp.
The pair was able to retrace its entire run to a monthly high on the back of the latest macro data and policy update out of the United States.
Amid ongoing concerns over the solvency of the world’s largest exchange, Binance, market sentiment showed what traders were calling a clear case of cold.
The evidence, they suggested, just wasn’t in the bears’ favour.
“The craziest rumors and FUDs are out there about literally everyone in the crypto exchange industry,” Michaël van de Poppe, founder and CEO of trading company Eight, tweeted on the day.
Another article elaborated on who these players are:
“Apparently the consensus is that Tether, Binance, DCG will all go under. Possibly even Michael Saylor. That’s clear, I understand.
Crypto trader and analyst Ed seemed equally skeptical, drawing attention to the bitcoin mimic’s decline in line with US stocks the previous day.
“Interesting to see everyone suddenly being so bearish on BTC like they’re just acting so weak. SPX does exactly the same thing, maybe even weaker,” he told his followers, wondering if “fud Binance” really had a role to play.
BTC/USD vs S&P 500% change chart. Source: Trade View
Research: Binance reserves data “reasonably”
Reviewing previous proof of Binance’s reserves, on-chain analytics platform CryptoQuant also found little evidence of foul play.
Related: Why is the crypto market down today?
“To assess the information contained in Binance’s Reserve Evidence 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 estimate of Binance deposits customers),” he explained in a Dec. 15 blog post:
“We found that the liabilities reported by Binance are very similar to our rating (99%).”
He added that the data provided by Binance on his liabilities made “meaningful”.
However, no insurance was enough to comfort the BTC price action on the day at just $17,000 at the time of writing.
Popular crypto trader Tony signaled the arrival of the “next wave down for the bears” amid persistent predictions of a cycle bottom of $12,000 or below.
“BTC all as expected… if we consolidate above 16900 for a while I will open a long… patient for now,” wrote fellow Elizy in a new update.
This article does not contain any investment advice or recommendation. Every investment and trading move involves risk and readers should do their own research when making a decision.