Bitcoin Aims for $16.7K on Fears BNB Could ‘Drag the Entire Crypto Market Down’
Bitcoin (BTC) looked set to drop $17,000 after Wall Street opened on December 16 as US stocks continued to fall.
Analyst: $240 billion “has nothing but air under it”
Data from Cointelegraph Markets Pro and TradingView tracked fresh intraday lows of $16,743 for BTC/USD on Bitstamp.
The pair had plunged nearly 3% earlier in the day, compounding the losses, which immediately followed one-month highs.
Ongoing concerns over the largest global exchange Binance permeated the mood, these came despite the best efforts of CEO Changpeng Zhao to remove what he called “FUD.” As Cointelegraph reported, longtime crypto traders were equally skeptical about the credibility of the “craziest rumors” about the crypto exchange sector.
Nevertheless, the markets refused to give them a break, and beyond Bitcoin, warnings about the fate of Binance’s internal token, Binance Coin (BNB), increased.
BNB/USD fell to near $240 on the day, marking its lowest level since July.
“BNB has nothing but air under it,” popular trader and analyst Matthew Hyland recognized.
“As the third largest non-stable crypto, if it crashes here, it will drag the entire crypto market down with it.”
The move fed into bearish traders’ long-term plan, with Il Capo of Crypto notably already calling for a bottom under $50.
Pressure mounted around Binance itself on the day, with the Proof of Reserves report deleted by auditor Mazars Group, which added that it would no longer work with crypto industry clients.
Concluding on Twitter, Zhang publicly ridiculed a post by outspoken TV personality Jim Cramer, who so that he “would trust my money in Draftkings more than I would trust in binance.”
“Now we are safe!” Zhang black.
Crypto lags lower with US stocks
Related: Bitcoin Santa Claus rally unlikely, according to on-chain and derivatives data
Beyond crypto, US stocks saw yet another weak performance at the open, the S&P 500 down around 1.4% at the time of writing.
For Mike McGlone, senior commodity strategist at Bloomberg Intelligence, the situation was not as bad as it might seem.
“Normal reversion can feel like a crash – The tendency for correlations to gravitate to 1-to-1 when the stock market falls could be a primary factor for all assets in 2023, especially commodities,” he wrote in part of the commentary together with an explanatory diagram.
In the past, however, McGlone warned that the brand showed potential similarities to the period before the 1929 Wall Street Crash.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
