The post Could Binance’s Actions Lead to a Bitcoin Crash? Here’s What’s Happening appeared first on Coinpedia Fintech News

The leading cryptocurrency exchange by daily traded volume and global registered users, Binance, has seen one of its recent biggest Bitcoin outflows in the past 24 hours amounting to roughly $125 million. According to market aggregate data provided by Coinglass, the Binance exchange currently holds about 560k Bitcoins, with most belonging to customers. Binance has been working to prevent a capitulation, as observed with the recent manual liquidation of the BSC hacker on the Venus Finance bridge, whereby the company provided $30 million.

Analyst Take on Binance Woes Against Bitcoin

Amidst reports of Binance selling its Bitcoin holdings to prop BNB price from further capitulation, most investors have been wondering how far the latter can outweigh the former. As a major Bitcoin holder, Binance CEO Changpeng Zhao has not updated the community on ongoing allegations as expected. However, Crypto Rover’s analyst Daan thinks a black swan event could be on the horizon, perhaps much worse than the FTX and Alameda Research implosion.

In the short term, the analyst expects Bitcoin price to continue dropping towards $24.7k, where solid support can be plotted. If the bulls take over from this support level, the analyst expects a rebound towards $30k. Meanwhile, BNB price actions hold the key to Bitcoin in the short term as crypto traders closely monitor the company’s updates.

Before the FTX collapse, rumors of loan liquidations were circulating, just as it is happening now with Binance. As a result, Crypto Rover’s Daan has warned investors to remain vigilant on a possible similar event with Binance, which is at high risk of liquidation.

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Filed under: Bitcoin - @ August 22, 2023 11:23 am