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Bitcoin (BTC) fell below $17,000 on December 16 as traders warned of an overreaction to “FUD” involving Binance and other exchanges.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

Binance ‘FUD’ Fuels Lower BTC Moves

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it set a multi-day low of $16,928 on Bitstamp.

The pair has retraced its full run to one-month highs on the back of recent macroeconomic data and an update on US policy.

Amid ongoing concerns over the solvency of Binance, the largest global exchange, market sentiment showed what traders argued was a case of apparent coolness.

They suggested the evidence simply didn’t stack up in favor of the bears.

“The craziest rumors and FUD swirling around literally everyone in the crypto exchange business,” Michael van de Poppe, founder and CEO of trading firm Eight. on Twitter in the day.

A later post expanded on who those players are;

“Obviously the consensus is that Tether, Binance, DCG are all going to go down. Maybe even Michael Saylor. Simple, I understood.

Fellow trader and analyst Crypto Ed was equally skeptical, noting the decline in Bitcoin replication. corresponding to US stocks the previous day.

“It’s interesting to see that everyone is suddenly so impatient with BTC, as if it is exceptionally weak. SPX is doing exactly the same, maybe even weaker,” he told followers wondering if the “Binance Fud” really had a role.

BTC/USD vs. S&P 500% Change Chart. Source: TradingView

Research. Binance backup data ‘makes sense’

Meanwhile, examining previous evidence of Binance reserves, on-chain analytics platform CryptoQuant also found little evidence of foul play.

Related to: Why is the crypto market down today?

To evaluate the information contained in Binance’s Proof of Reserves report, we compared the commitments reported by Binance in the report to the on-chain metrics available in CryptoQuant regarding Binance’s BTC reserves (our estimate of deposits made by Binance customers. In a December 15 blog post.

“We found that the commitments quoted by Binance are very similar to our estimate (99%).

It added that the data provided by Binance on its liabilities “makes sense”.

No amount of reassurance was enough to comfort BTC’s price action, however, barely sitting at $17,000 at the time of writing.

Popular trader Crypto Tony thus announced entry into the “downward next wave for bears” amid continued predictions of a cycle below $12,000..

“Btj all as expected… if we consolidate above 16900 for a while I will open long…. still patient for now,” to salesman Elise. wrote with fresh update.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making a decision.