Bitcoin (BTC) continues to slide below $17,000 after the opening for trading on Wall Street also sent stock prices lower.
BNB still has plenty of downside
An interday low of $16,743 was reached at the end of December 16, according to data from Cointelegraph Markets Pro and TradingView respectively.
These losses were fueled by a sudden 3% drop at the start of the day that almost completely erased the gains of the past few days.
The trigger for this small crash was new concerns about market-leading crypto exchange, Binance, which could not be mitigated by assurances from CEO Changpeng Zhao – that it was just “scaremongering”. As reported by Cointelegraph, experts also believe that the rumors of a possible collapse of Binance are downright “crazy”.
Nevertheless, the mood turned negative and, in addition to Bitcoin, proprietary cryptocurrency Binance Coin (BNB) felt the panic.
As a result, the price of BNB fell to 240 US dollars and thus to its lowest level since July.
“BNB still has a lot of downside,” analyst Matthew Hyland said dreaded. To which he adds:
“If the third-largest cryptocurrency really goes down, it will likely take the whole market down with it.”
Bearish traders like Crypto’s Il Capo to telephone already has a long-term price target below US$50.
The pressure on Binance was significantly fueled during the day after Mazars’ auditing firm suddenly suppressed its Proof of Reserves (PoR) audit report for the leading crypto exchange.
Meanwhile, a minor spat broke out on Twitter between defiant TV financial pundit Jim Cramer and Binance boss Zhao, because the former had Pointthat he would rather leave his money with the bookmaker Draftkings rather than the big crypto exchange.
The trading platform manager replied with a wink and the statement“Now we’re safe!”, because Cramer is notorious in the financial community for his erroneous valuations, which is often the exact opposite.
Crypto market and stock market retracement
Along with the weakening crypto market, the stock market also has to accept losses, with the all-important S&P 500 stock index dropping almost 1.4%.
However, Mike McGlone, chief analyst at Bloomberg Intelligence, sees the situation as much less serious than it seems.
“Normal returns sometimes look like a crash. The tendency for the correlation of other markets to the downside of the stock market to go to 1 or -1 will also be an important factor for all financial products in 2023, especially for commodities. first”, because the expert explains the apparent weakness Explain.
However, McGlone previously warned that the current market situation looks alarmingly similar to the situation before the Wall Street crash of 1929.