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Bitcoin Price Slides Further, BNB Collapse Could Crash the Whole Market

Bitcoin reached an interim daily low of $16,743 late on December 16th. These losses were driven by a sudden 3% downturn at the start of the day, which all but erased the gains of the previous few days.In addition to the weakening crypto market, the stock market is also suffering losses, with the key S&P 500 stock index down nearly 1.4%.

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Bitcoin continues to fall below $17,000 after the opening of trading on Wall Street also caused stock prices to fall.

If you want to find more details about the price of Bitcoin and how the BNB collapse could affect the entire market, download for free the Born2Invest mobile app. Our companion app keeps its readers up to date with the most important financial news so they can stay on top of the market.

BNB still has a lot of room to go down

As Cointelegraph Markets Pro and TradingView data appropriately showed, an interim daily low of $16,743 was reached late on December 16th. These losses were driven by a sudden 3% downturn at the start of the day, which all but erased the gains of the previous few days.

This small crash was triggered by new worries about the market-leading crypto exchange Binance, which could not be diminished even by the assurances of its CEO Changpeng Zhao – that it is merely “scaremongering”. As Cointelegraph had reported, experts also feel that the rumors surrounding Binance’s possible collapse are downright “crazy.”

Nevertheless, the sentiment tipped into the negative and besides Bitcoin, first and foremost, Binance’s proprietary cryptocurrency Binance Coin.

As a result, the BNB price plummeted to $240, its lowest level since July. “BNB still has a lot of room to go down,” as analyst Matthew Hyland fears. To this he added: “If the third largest cryptocurrency really crashes, I think it will drag the whole market down with it.”

Bearish traders like Il Capo of Crypto are already calling for a long-term price target of less than $50.

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The pressure on Binance has been significantly fueled during the day by the fact that auditors Mazars suddenly deleted their proof-of-reserves (PoR) audit report for the major crypto exchange.

Meanwhile, a minor spat erupted on Twitter between provocative TV financial pundit Jim Cramer and Binance CEO Zhao, as the former had quipped that he would rather leave his money to betting provider Draftkings than the major crypto exchange.

To this, the head of the trading platform responded with a wink and the statement, “Now we’re safe!”, because Cramer is known in the financial community for his erroneous assessments, in which the exact opposite often occurs.

Crypto market and the stock market in retreat

In addition to the weakening crypto market, the stock market is also suffering losses, with the key S&P 500 stock index down nearly 1.4%.

However, Mike McGlone, the chief analyst at Bloomberg Intelligence, sees the situation as far less dire than it seems. “Normal declines sometimes feel like a crash. The tendency for the correlation of other markets to the declining stock market to go to 1 or -1 will continue to be an important factor for all financial products in 2023, especially for commodities,” as the expert explains the apparent weakness.

Anyway, McGlone had previously warned that the markets currently show alarming similarities to the situation before the Wall Street Crash of 1929.

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(Featured image by mohamed_hassan via Pixabay)

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Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.