Bitcoin falls below $17K as ‘craziest rumours’ over Binance drop BTC price
Bitcoin (BTC) fell below $17,000 on December 16 as traders warned of overreaction to “FUD” involving exchange Binance and others.
Binance “FUD” Fuels Bearish BTC Moves
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it posted multi-day lows of $16,928 on Bitstamp.
The pair returned to one-month highs thanks to the latest macroeconomic data and policy update from the US.
Amid ongoing concerns over the solvency of the largest global exchange Binance, market sentiment showed what traders claimed was a clear case of cold feet.
The evidence, they suggested, simply didn’t stack up in the bears’ favor.
“The craziest rumors and FED going around literally everyone in the crypto exchange industry,” Michaël van de Poppe, founder and CEO of trading firm Eight, tweeted on the day.
A further post expanded on who these players are:
“Apparently the consensus is that Tether, Binance, DCG are all going to fall. Potentially even Michael Saylor. Sure, got it.”
Fellow trader and analyst Crypto Ed sounded equally skeptical, drawing attention to Bitcoin’s copycat comedown in line with US stocks the day before.
“Interesting to see everyone suddenly so bearish on BTC as if it’s just behaving so weakly. SPX is doing exactly the same, maybe even weaker,” he told followers, asking if the “Binance fud” really had a role to play.
Research: Binance reserve data ‘makes sense’
In investigating Binance’s previous declaration of proof of reserves, on-chain analytics platform CryptoQuant also found little evidence of foul play.
Related: Why Is The Crypto Market Down Today?
“To evaluate the information in Binance’s Proof-of-Reserves report, we compared the commitments presented by Binance in the report with the on-chain data we have at CryptoQuant regarding Binance’s BTC reserves (our estimate of the deposits made by Binance’s customers),” it explained in a blog post on December 15:
“We discovered that the commitments provided by Binance are very similar to our assessment (99%).”
It added that the data Binance provided on its commitments “makes sense.”
No insurance was enough to comfort BTC price action on the day, however, with $17,000 barely holding on at the time of writing.
Popular trader Crypto Tony that is announced entry of “the next wave down for the bears,” amid ongoing predictions of a cycle low of $12,000 or below.
“BTC all as expected…if we consolidate for a while above 16900 I will open a long…still patient for now,” Elizy trades wrote in a recent update.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
