Bitcoin targets $16.7K amid fear BNB may 'drag whole crypto market down'

Bitcoin (BTC) looked acceptable to ditch $17,000 aft the Dec. 16 Wall Street unfastened arsenic United States equities continued to fall.

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

Analyst: $240BNB "has thing but aerial beneath it"

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

The brace had abruptly dived astir 3% earlier successful the day, compounding losses, which instantly followed one-month highs.

Ongoing concerns implicit largest planetary speech Binance pervaded the mood, these coming contempt the champion efforts of CEO, Changpeng Zhao, to dispel what helium called “FUD.” As Cointelegraph reported, longtime crypto traders were likewise skeptical of the credibility of the “craziest rumors” astir the crypto speech sector.

Nonetheless, markets refused to springiness them a break, and beyond Bitcoin, warnings accrued implicit the destiny of Binance’s in-house token, Binance Coin (BNB).

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

“BNB has thing but aerial beneath it,” fashionable trader and expert Matthew Hyland acknowledged.

“As the 3rd largest non-stable crypto, if it crashes present it's going to resistance the full crypto marketplace down with it.”

BNB/USD 1-day candle illustration (Binance). Source: TradingView

The determination fed into bearish traders’ longer-term plan, with Il Capo of Crypto notably already calling for a bottommost below $50.

Pressure accrued astir Binance itself connected the day, with its impervious of reserves study deleted by auditor Mazars Group, which added that it would nary longer enactment with crypto manufacture clients.

In a square-off connected Twitter, meanwhile, Zhang publically ridiculed a station from outspoken tv property Jim Cramer, who said that helium “would spot my wealth much successful Draftkings than one would binance.”

“Now we are safe!” Zhang responded.

Crypto limps little with U.S. stocks

Related: Bitcoin Santa Claus rally unlikely, according to on-chain and derivatives data

Beyond crypto, U.S. stocks saw different anemic show astatine the open, the S&P 500 down astir 1.4% astatine the clip of writing.

For Mike McGlone, elder commodity strategist astatine Bloomberg Intelligence, the concern was not arsenic atrocious arsenic it whitethorn seem.

“Normal Reversion Can Feel Like a Crash - The propensity for correlations to gravitate to 1-to-1 erstwhile the banal marketplace declines whitethorn beryllium a superior origin for each assets successful 2023, peculiarly commodities,” helium wrote successful portion of commentary alongside an explanatory chart.

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

Earlier, McGlone nevertheless cautioned that the marked was displaying imaginable similarities to the play earlier the 1929 Wall Street Crash.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.