Bitcoin Plunges Below $17,000 As Binance’s ‘Craziest BTC Price Rumors’

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Bitcoin (BTC) fell below $17,000 on Dec. 16 as traders warned of an overreaction to FUD involving the Binance exchange and others.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBinance “FUD” Fuels BTC Bearish Moves

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

The pair retraced its entire run to one-month highs thanks to the latest macro data and policy update from the United States.

Amid lingering concerns over the solvency of the world’s largest exchange Binance, market sentiment showed what traders described as a clear case of coldness.

The evidence, they suggested, was simply not in favor of the bears.

Michal van de Poppe, founder and CEO of trading firm Eight, tweeted the craziest rumors and FUDs circulating about literally everyone in the crypto exchange industry that day.

Another article elaborated on who these players are:

Apparently the consensus is that Tether, Binance, DCG will all go down. Potentially even Michael Saylor. Clear, I understand.

Fellow Crypto trader and analyst Ed seemed similarly skeptical, drawing attention to Bitcoin copycats falling in line with US stocks the day before.

Interesting to see everyone suddenly so bearish on BTC as if acting only so weakly. SPX does the exact same thing, maybe even weaker, he told his followers, wondering if Binance’s fud really had a role to play.

BTC/USD vs. S&P 500% change chart. Source: TradingViewResearch: Binance Reserves Data “Makes Sense”

When reviewing Binances’ previous proof of reserves statement, on-chain analytics platform CryptoQuant also found little evidence of foul play.

Related: Why is the Crypto Market Down Today?

To assess the information contained 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 estimate of deposits made by Binance customers), he explained in a blog post on December 15.

We found that the liabilities reported by Binance are very similar to our assessment (99%).

He added that the data provided by Binance on its liabilities made sense.

However, no insurance was enough to console BTC price action on the day, with just $17,000 at the time of writing.

Popular Crypto trader Tony thus signaled the entry of the next down wave for the bears, amid ongoing forecasts of a cycle low at $12,000 or lower.

BTC all as expected…if we consolidate for a while above 16900 I will open a long….still patient for now, Elizy wrote in a new update.

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

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