Bitcoin (BTC) looked set to break above $17,000 after the Wall Street open on Dec. 16, as the US stock market continued to slide.
Analyst: BNB “has nothing but air underneath”
Data from Cointelegraph Markets Pro and TradingView tracked fresh intraday lows of $16,743 for the BTC/USD pair on Bitstamp.
The pair had fallen sharply nearly 3% earlier in the day, compounding losses, which came on the heels of one-month highs.
Ongoing concerns about the world’s largest exchange, Binance, pervaded the air, despite CEO Changpeng Zhao’s efforts to dispel what he called “FUD.” As we told you before, the most experienced cryptocurrency traders were equally skeptical about the credibility of the “craziest rumors” about the crypto exchange sector.
However, the markets refused to give them a break, and beyond Bitcoin, warnings about the fate of Binance’s in-house token, Binance Coin (BNB), mounted.
The BNB/USD pair fell to near $240 on the day, marking its lowest levels since July.
“BNB has nothing but air underneath”, acknowledged the popular trader and analyst; Matthew Hyland.
“As the 3rd non-stable cryptocurrency, if it crashes here it will take the entire cryptocurrency market down with it.”
The move fueled the long-term plan of bearish traders, with Il Capo of Crypto calling for a bottom for below USD 50.
Pressure mounted around Binance itself on the day, with its proof of reserves report removed by auditor Mazars Group, which added that it would no longer work with clients in the cryptocurrency industry.
Meanwhile, in a Twitter clash, Zhao publicly ridiculed a post by TV personality Jim Cramer, who said that “I would trust my money more in Draftkings than in Binance”.
“Now we are safe”, answered Zhao.
Cryptocurrencies Limp Lower with US Stocks
Beyond cryptocurrencies, US stocks again underperformed at the open, with the S&P 500 shedding around 1.4% as of writing.
For Mike McGlone, chief commodity strategist at Bloomberg Intelligence, the situation was not as bad as it might seem.
“The normal reversal may look like a crash – The propensity of correlations to gravitate to 1 to 1 when the stock market falls may be a major factor for all assets in 2023, particularly commodities,” wrote in part of the comment together with an explanatory graphic.
However, McGlone cautioned that the marking showed possible similarities to the period before the Wall Street Crash of 1929.
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