Bitcoin targets $16.7,000 amid fears BNB could ‘drag the entire crypto market down’

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Bitcoin (BTC) looked set to drop $17,000 after Wall Street opened Dec. 16 as US stocks continued to slide.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewAnalyst: 240 BNB “is nothing but air underneath”

Data from Cointelegraph Markets Pro and TradingView tracked new intraday lows of $16,743 for BTC/USD on Bitstamp.

The pair had plunged sharply nearly 3% earlier in the day, deepening the losses, which immediately followed the one-month highs.

Ongoing concerns about the world’s largest exchange Binance permeated the mood, these coming despite CEO Changpeng Zhao’s best efforts to dispel what he called FUD. As Cointelegraph reported, longtime crypto traders were also skeptical of the credibility of the wildest rumors about the crypto exchange industry.

Nonetheless, the markets refused to give them a break, and beyond Bitcoin, warnings grew about the fate of Binances’ in-house token, Binance Coin (BNB).

BNB/USD fell to near $240 on the day, marking its lowest levels since July.

BNB is nothing but air underneath, acknowledged popular trader and analyst Matthew Hyland.

As the 3rd largest non-stable crypto, if it crashes here it will drag the whole crypto market down. Source: Trading View

The move fueled bearish traders’ longer-term plan, with Crypto’s Il Capo notably already calling for a floor below $50.

Pressure grew around Binance itself that day, with its proof of reserves report removed by auditor Mazars Group, which added that it would no longer work with clients in the crypto industry.

In a square on Twitter, meanwhile, Zhang publicly ridiculed a post from outspoken TV personality Jim Cramer, who said he would trust my money in Draftkings more than I would.

Now we are safe! Zhang replied.

Crypto limps lower with US stocks

Related:Bitcoin Santa Claus Rally Unlikely, According to On-Chain and Derivatives Data

Beyond crypto, US equities posted another weak performance at the open, with the S&P 500 down around 1.4% at the time of writing.

For Mike McGlone, senior commodities strategist at Bloomberg Intelligence, the situation wasn’t as bad as it looks.

Normal reversion may look like a crash – The propensity for correlations to hover around 1 to 1 when the stock market declines may be a main factor for all assets in 2023, especially commodities, he wrote in part of the commentary accompanied by an explanatory table.

Bloomberg Commodity Spot Index vs. Annotated Chart S&P 500. Source: Mike McGlone/Twitter

Earlier, McGlone nevertheless warned that the market had potential similarities to the period before the Wall Street crash of 1929.

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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