BTC/USD hit multi-day lows of $16,928 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
Thanks to the most recent macroeconomic data and policy update from the United States, the pair reversed its entire run and reached one-month highs.
Market mood revealed what traders said to be a blatant case of cold feet amid persistent worries over the viability of Binance, the largest global exchange.
Michal van de Poppe, founder and CEO of trading company Eight, tweeted that day, “The wildest rumours and FUD flying around on basically anybody in the crypto exchange sector.”
Who those players are was further upon in a later post:
Everyone agrees that Tether, Binance, and DCG will all lose value. Even Michael Saylor, perhaps. Nice, I got it.
Crypto Ed, a fellow trader, and analyst, was also doubtful, pointing out that Bitcoin had a similar comedown to U.S. stocks the day before.
“Interesting to watch everyone become suddenly so negative against Bitcoin as if it were only behaving so feebly. He questioned if the “Binance fud” had any bearing on the situation and stated that SPX was performing precisely the same, if not weaker.
While investigating Binance’s initial proof of reserves assertion, the on-chain analytics tool CryptoQuant also discovered little indication of wrongdoing.
It was outlined in a blog post on December 15 how to check the integrity of the data in Binance’s Proof-of-Reserves 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 estimation of the deposits made by Binance’s customers):
We found that Binance’s declared liabilities are 99% identical to what we estimated. It continued by saying that the information Binance provided regarding its obligations “makes logical.”
Although $17,000 is barely held at the time of writing, no consolation could make the day’s BTC price movement more bearable.
Well-known cryptocurrency trader, As a result, Tony declared the beginning of “the second wave down for the bears” despite persistent forecasts of a cycle bottom at $12,000 or less.
BTC is performing as predicted, according to a recent report from fellow trader Eliza. “If we consolidate for a bit above 16900, I will open a long…. remain patient for now,” he stated.
Carnage in the crypto markets shows no signs of slowing down, as bitcoin and ether continue their sell-off at a rapid clip on Saturday afternoon.
This comes as crypto hedge funds and businesses face growing questions about insolvency.
“We had financial instability because of this opaque leverage; you just couldn’t tell where all these risks were building up,” Paxos CEO & Co-Founder Charles Cascarilla.
“In some ways, this is just an age-old story. You’re borrowing short and lending long. And it’s miserable that people lose money, and it will sometimes set back the space.
Because you will lose some early adopters or people who just came in new to the space,” continued Cascarilla. But Cascarilla also says that investors are still looking for quality crypto investments.