Crypto Currency Tracker logo Crypto Currency Tracker logo
NewsBTC 2023-06-13 21:30:10

Binance CEO Controversial Move: Selling Bitcoin To Save BNB?

The ongoing crackdown by the US Securities and Exchange Commission (SEC) on the crypto industry has taken a toll on one of the largest exchanges in the market, Binance. The SEC recently filed a lawsuit against Binance.US, which has resulted in a significant decline in the value of Binance Coin (BNB). BNB has dropped more than 23% in the last week alone, currently trading at $238. Related Reading: Ethereum Bears Set Their Sights On Next Downside Target If $1,700 Support Breaks Binance CEO’s Bitcoin Sell-Off As reported by NewsBTC, BNB is facing a potentially catastrophic situation after an exploit on the Binance Smart Chain’s Binance Bridge. The exploit could liquidate $200 million on Venus Decentralized Autonomous Organization (DAO) if the BNB price drops to $220. Given these developments, reports now suggest that Binance and its CEO, Changpeng Zao, sell spot Bitcoin (BTC) to prevent BNB from falling to $220. This move has been taken to defend against the liquidation of BNB at this key level, but it also capped the upside potential of Bitcoin. The practice of selling spot Bitcoin to purchase BNB is known as a “liquidation waterfall,” it is a common tactic used by exchanges to protect their users from significant losses. As spot Bitcoin is sold off, BNB is purchased, which helps to defend the $220 liquidation level. However, this also puts a cap on the upside potential of Bitcoin as the selling pressure on Bitcoin increases. According to the crypto trader “JW”, Binance and CZ have been selling spot Bitcoin at an alarming rate to support BNB, as seen in the chart above, which has resulted in the decline of Bitcoin’s value. While this move may help defend against the liquidation of BNB, it can potentially negatively impact the wider cryptocurrency market. In addition, despite positive economic news from the US, Bitcoin is struggling to break through its newly formed resistance at $26,400 and is currently trading at $25,800. The US Consumer Price Index indicates that the country’s inflation is slowing down, creating a more “relaxed” economic environment. However, concerns over regulatory crackdowns and alleged selling pressure from Binance and its CEO are mounting, resulting in selling pressure preventing the largest cryptocurrency from continuing its bullish trend. Bitcoin Analyst Anticipates Drop To $24,000 According to cryptocurrency analyst Michael Van de Poppe, Bitcoin is currently facing a crucial resistance level at $26,400 and has been unable to break through it. As a result, Van de Poppe expects the markets to drop into the Federal Open Market Committee (FOMC) meeting, which is scheduled for tomorrow. Van de Poppe’s analysis suggests that Bitcoin’s price may experience some downward pressure in the short term. However, he also sees this as an opportunity for traders to buy into the market at a lower price point. Related Reading: Crypto Frenzy: Whale Accumulates 1.5 Trillion SHIB, Sparking Surge In Price The area around $24,500-$25,000 is a significant support level, and if Bitcoin’s price drops to this mark, it could present an attractive buying opportunity for investors. Featured image from iStock, chart from TradingView.com

면책 조항 읽기 : 본 웹 사이트, 하이퍼 링크 사이트, 관련 응용 프로그램, 포럼, 블로그, 소셜 미디어 계정 및 기타 플랫폼 (이하 "사이트")에 제공된 모든 콘텐츠는 제 3 자 출처에서 구입 한 일반적인 정보 용입니다. 우리는 정확성과 업데이트 성을 포함하여 우리의 콘텐츠와 관련하여 어떠한 종류의 보증도하지 않습니다. 우리가 제공하는 컨텐츠의 어떤 부분도 금융 조언, 법률 자문 또는 기타 용도에 대한 귀하의 특정 신뢰를위한 다른 형태의 조언을 구성하지 않습니다. 당사 콘텐츠의 사용 또는 의존은 전적으로 귀하의 책임과 재량에 달려 있습니다. 당신은 그들에게 의존하기 전에 우리 자신의 연구를 수행하고, 검토하고, 분석하고, 검증해야합니다. 거래는 큰 손실로 이어질 수있는 매우 위험한 활동이므로 결정을 내리기 전에 재무 고문에게 문의하십시오. 본 사이트의 어떠한 콘텐츠도 모집 또는 제공을 목적으로하지 않습니다.