Due to recent developments involving Binance, the largest cryptocurrency exchange in the world, the cryptocurrency community is awash with rumors and worries. According to rumors, Binance may start selling Bitcoins to offset a drop in the value of its native asset, BNB.
BNB’s price earlier in the week fell under $210, representing a decrease of more than 30% year to date. If the price of BNB continues to fall, observers are concerned that Binance may run into problems similar to those that FTX did.
In the middle of these ambiguities, the price of Bitcoin fell below $26,000. Crypto analyst Mike Alfred predicted that a stoppage of withdrawals by Binance might cause a sudden increase in the price of Bitcoin and possibly result in a large rise known as a “god candle.” He observed:
“CZ appears to be selling Bitcoin to keep the value of BNB stable, but the strategy isn’t working. The worth of BNB is decreasing. I anticipate it falling below $200 in the upcoming 48 hours. If Binance stops allowing withdrawals, Bitcoin may experience a rapid recovery. A significant increase is possible.
Although BNB has slightly recovered from its most recent low, trading at $213 with a market valuation of $32.9 billion, Alfred believes the price may shortly fall below $200. He critiqued the attempts at disguising and made a comment about how certain market activities connected to Binance are becoming plainly visible.
A well-known trader named Peter Brandt also raised pessimism about Binance in a tweet regarding his ongoing concerns about CZ, Binance, and the reliability of BNB.
The cryptocurrency world is anxiously awaiting Changpeng Zhao, the CEO of Binance, to make a formal remark about these persistent rumors.