The Recent Bitcoin Outflow from Binance
The leading cryptocurrency exchange by daily traded volume and global registered users, Binance, has experienced a significant Bitcoin outflow within the last 24 hours, totaling approximately $125 million. According to data aggregated by Coinglass, Binance currently holds around 560,000 Bitcoins, with the majority of these belonging to its customers.
Binance’s Efforts to Prevent Capitulation
Binance has been actively working to avert potential market capitulation. A recent example of this was the manual liquidation of the BSC hacker on the Venus Finance bridge, where Binance provided $30 million to address the situation.
Analyst’s Perspective on Binance’s Relationship with Bitcoin
Amidst reports of Binance selling its Bitcoin holdings to support the price of BNB and prevent further capitulation, many investors are curious about the potential consequences of this strategy. Despite being a major holder of Bitcoin, Binance CEO Changpeng Zhao has not yet addressed these ongoing allegations publicly.
Crypto Rover’s analyst, Daan, has expressed concerns about the possibility of a black swan event looming on the horizon. Daan suggests that this event could potentially be more severe than the FTX and Alameda Research implosion. In the short term, the analyst anticipates a further drop in Bitcoin’s price, possibly reaching $24.7k, where a strong support level is anticipated. If the bulls manage to regain control from this support level, a rebound towards $30k could be expected.
Interestingly, the price actions of BNB, Binance’s native cryptocurrency, are viewed as influential in determining Bitcoin’s short-term trajectory. Crypto traders are closely monitoring updates from the company to gauge potential market shifts.
Comparisons to Previous Events and Caution for Investors
Prior to the FTX collapse, rumors of loan liquidations were circulating, mirroring the current situation with Binance. As a result, Crypto Rover’s Daan has advised investors to exercise caution and remain vigilant regarding the possibility of a similar event occurring with Binance. The exchange appears to be at a heightened risk of liquidation, emphasizing the need for careful observation of market dynamics.
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