Bitcoin dips under $17K as 'craziest rumors' over Binance sink BTC price

Bitcoin (BTC) fell beneath $17,000 connected Dec. 16 arsenic traders warned of overreaction to “FUD” involving speech Binance and others.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Binance "FUD" fuels bearish BTC moves

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it enactment successful multi-day lows of $16,928 connected Bitstamp.

The brace retraced its full tally to one-month highs courtesy of the latest macroeconomic information and argumentation update from the United States.

Amid ongoing concerns implicit the solvency of largest planetary speech Binance, marketplace sentiment showed what traders argued was a wide lawsuit of acold feet.

The evidence, they suggested, simply did not stack up successful bears’ favor.

“The craziest rumours and FUD going astir connected virtually everybody successful the crypto speech business,” Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, tweeted connected the day.

A further station expanded connected who those players are:

“Apparently the statement is that Tether, Binance, DCG are each going to fall. Potentially adjacent Michael Saylor. Clear, got it.”

Fellow trader and expert Crypto Ed sounded arsenic skeptical, drafting attraction to Bitcoin’s copycat comedown successful enactment with U.S. equities the time prior.

“Interesting to spot everyone abruptly truthful bearish connected BTC arsenic if it's solely acting truthful weak. SPX is doing precisely the same, possibly adjacent weaker,” helium told followers, querying whether the “Binance fud” truly had a relation to play.

BTC/USD vs. S&P 500 % alteration chart. Source: TradingView

Research: Binance reserves information "makes sense"

In examination of Binance’s erstwhile impervious of reserves statement, meanwhile, on-chain analytics level CryptoQuant likewise recovered small grounds of foul play.

Related: Why is the crypto marketplace down today?

“To measure the accusation contained successful Binance's Proof-of-Reserves report, we compared the liabilities presented by Binance successful the study to the on-chain metric information we person astatine CryptoQuant regarding Binance's BTC Reserves (our estimation of the deposits made by Binance's customers),” it explained successful a blog station connected Dec. 15.

“We discovered that the liabilities stated by Binance are highly akin to our appraisal (99%).”

It added that the information Binance supplied astir its liabilities “makes sense.”

No magnitude of reassurance was capable to console BTC terms enactment connected the day, however, with $17,000 hardly holding astatine the clip of writing.

Popular trader Crypto Tony frankincense announced introduction of “the adjacent question down for the bears,” amid ongoing predictions of a rhythm debased astatine $12,000 oregon under.

“BTC each arsenic expected ... if we consolidate for a portion supra 16900 I volition unfastened a agelong .... inactive diligent for now,” chap trader Elizy wrote successful a caller update.

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