An analyst has issued a warning that Binance Coin “has nothing but air below it” as the price movement of BTC continues to deteriorate.
Analyst: $240BNB “just contains air” is the only item below it.
The Bitcoin to US Dollar exchange rate dropped to a new intraday low of $16,743 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The pair had suddenly dropped about 3% earlier in the day, increasing losses, which immediately followed monthly highs that had been reached earlier in the day.
Despite the best efforts of CEO Changpeng Zhao to dispel what he called “FUD,” ongoing concerns about the largest global exchange, Binance, dominated the mood. These fears came about despite the fact that Binance was founded in 2017. According to a study by Cointelegraph, experienced crypto traders shared a similar scepticism over the legitimacy of the “craziest stories” regarding the cryptocurrency exchange industry.
Binance Coin BNB/USD dropped to near $240 on the day, marking its lowest levels since July. Despite this, the markets refused to give them a respite, and beyond Bitcoin, concerns intensified over the destiny of Binance’s in-house token.
Matthew Hyland, a well-known trader and analyst, admitted that “BNB has nothing but air below it.”
This development contributed to the longer-term plan of pessimistic traders, with Il Capo of Crypto being one notable trader who had already called for a bottom below $50.
Pressure mounted around Binance itself during the day, with the auditor Mazars Group deleting the proof of reserves report for the company. The company also said that it would no longer deal with customers in the cryptocurrency industry.
In the meantime, Zhang engaged in an online debate with the outspoken television personality Jim Cramer on Twitter. Cramer had written that he “would trust my money more in Draftkings than I would binance.” Zhang responded by publicly mocking Cramer’s statement.
“Finally, we can rest easy!” It was Zhang who responded.
Cryptocurrencies and stock markets in the United States continue to struggle.
Aside from cryptocurrency, U.S. stocks had a rough start to the trading day, with the S&P 500 down by approximately 1.4% as this article was being written.
According to Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, the circumstance was not quite as dire as it might first appear.
He wrote in part of his commentary alongside an explanation chart, “Normal Reversion Can Feel Like a Crash. The tendency for correlations to gravitate to 1-to-1 when the stock market declines may be a primary factor for all assets in 2023, particularly commodities. ” This was in reference to the tendency for correlations to gravitate to 1-to-1 when the stock market declines.
Earlier, McGlone issued a warning that the market could be demonstrating potential similarities to the time period just before the Wall Street Crash of 1929.
Cointelegraph.com is source of this news
