Despite the recent flood of major news in the crypto sector, one topic is currently more hotly debated than any other: Is Binance selling Bitcoin on the spot market to support Binance Coin (BNB)? NewsBTC already reported Yesterday, the rumor emerged after crypto trader “JW” drew attention to eye-catching data.
However, the rumor is based on shaky data and data. There are, however, a few data points that experts call striking. Popular trader @52Skew said he could confirm that “it appears BTC is being sold for USDT reserves.”
Via Twitter, the crypto trader shared the chart below and explained that USDT reserves have been aggressively injected into BNB since May 27. Additionally, BNB would be sold to BUSD in order to remove the volatility of BTC:
BUSD is injected into BTC to remove downward volatility so that BTC can be exchanged for USDT. This is technically market manipulation, Binance is definitely up to something here to prevent BNB from collapsing as well as BTC.
Binance CEO Changpeng Zhao, aka “CZ,” felt compelled to respond to the allegations a few hours ago. Via Twitter, CZ called the trader’s allegations “FUD” and interrogates the data.
“4. Binance did not sell BTC or BNB. We even have a bag of FTT left. It’s amazing that they can know exactly who sold based on a simple price chart involving millions of traders. FUD,” writes Zhao, who also accuses the trader of selfish intentions: “Maybe they are selling short… who knows. »
Binance FUD renewed or real?
However, voices regarding an unusual price development on Binance are increasing. Joe Consorti, market analyst at The Bitcoin Layer, states that there is strong selling pressure on Bitcoin on Binance that is not present on other exchanges:
More cannon fodder that they could sell BTC spot to support BNB. The $220 level is strongly defended – it could be a liquidation level for a BNB-backed loan.
As reported According to NewsBTC, BNB is facing a potentially disastrous situation following an exploit on Binance Smart Chain’s Binance Bridge. The operator could be liquidated for $200 million on Venus Decentralized Autonomous Organization (DAO) if the BNB price falls below $220.
In light of this, “Binance critics” suspect that the exchange wants to keep BNB above $220 at all costs to avoid a “liquidation cascade.” However, CVD data is not really able to prove the truth of this rumor.
Cumulative Volume Delta (CVD) shows cumulative volume changes based on the trading volume of aggressive sellers versus aggressive buyers. This allows judgment to be made on the volume of an asset, but not on the source of the volume.
Therefore, until new evidence is presented, the rumor must be dismissed as just that: a rumor. Even if the CVD data shows an anomaly, it may be due to exceptional market activity on the world’s largest crypto exchange.
At press time, the price of BNB increased by 5.4% in the last 24 hours, trading at $248. Meanwhile, Bitcoin is down slightly by -0.8% over the same period.
Featured image by Markus Winkler / Unsplash, chart from TradingView.com