BTC

Is Binance Dumping BTC?

by BSC News

August 22, 2023

chain

Recent rumor suggests the exchange is allegedly selling Bitcoin to halt the declining BNB price; however, this rumor yet lacks validity.

Summary

  • Binance Coin (BNB) is experiencing a significant correction and has struggled to recover after Bitcoin dipped below $26,000.
  • BNB's crucial role in providing support to altcoins within the BEP20 ecosystem makes the situation even more challenging.
  • While the validity remains uncertain, a recent report indicates that Binance is allegedly selling Bitcoin in an attempt to stabilize the declining BNB price.

Amid a turbulent crypto landscape, concerns are mounting over Binance Coin (BNB) as it experiences a significant correction. Following Bitcoin’s recent dip below $26,000, the recent downturn has raised eyebrows, as BNB has struggled to recover, having breached the 200-week Moving Average (MA) for the first time.  

The situation becomes even more challenging due to BNB's crucial role in providing support to altcoins within the BEP20 ecosystem. 

BTC/USDT Weekly price chart. Source: TradingView

Intensified Regulatory Scrutiny

Binance has been grappling with intensifying regulatory pressures, with the aftermath of FTX and Alameda Research's collapse last year prompting closer scrutiny. Matters escalated when the United States Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance in March, accusing the exchange of operating unlawfully without proper compliance measures. 

Subsequently, the US SEC charged Binance and CEO Changpeng Zhao (CZ) with securities laws violations.

Regulatory scrutiny, particularly from the U.S., has forced Binance to sever key partnerships facilitating fiat-to-crypto transactions. London-based credit card processor Checkout.com recently cut ties with Binance due to concerns over regulatory actions, jurisdictional orders, and partner inquiries.

Is Binance resorting to Bitcoin to weather the storm?

The leading exchange holds a substantial Bitcoin reserve and has bolstered its infrastructure to enhance Bitcoin liquidity. A recent report from popular X account @WhaleChart indicates that Binance is allegedly selling Bitcoin in an attempt to stabilize the declining BNB price. However, the validity of this rumor remains uncertain, as there is no confirmation of its accuracy.

As of writing, $BNB is trading at $209.7 on Binance, continuing its bearish breakdown from the 200-week moving average. 

From a technical perspective, traders and investors are realizing that if BNB fails to maintain its current support, the potential for significant losses in the coming months becomes a serious concern.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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