Yesterday I saw some chatter about Binance’s BNB price weakness and some effect on the price of Bitcoin, as well as some vaguely ominous “get your coins off Binance warnings”, so I did a little bit of Twitter digging. I’m curious to get others’ opinions on this. This is all speculation, so take it with a heavy grain of salt …
Traders have noticed a BNB price of $220 being “heavily defended” on Binance. They surmise that Binance has to keep the price above that number to prevent trouble from BNB-backed loans.
In recent days (past week) traders have noticed lots of selling pressure on Binance’s Bitcoin that is not reflected in other exchanges. They suspect Binance is selling Bitcoin to prop up BNB.
Best summary I read was here:
Trader eyes are on the price of BNB. If it keeps dropping it could trigger a death spiral similar to FTX’s situation with their token last winter. This will cause the price of Bitcoin to drop in the short-term as Binance sells Bitcoin to buy BNB to try to save it.
Any thoughts on this? If Binance goes down it would be a much bigger fail than FTX. But Binance’s death has been predicted almost as many times as Bitcoin’s death has, and has proven resilient.
My personal thoughts: I don’t trust Binance or CZ, and I dislike any exchange that peddles their own token as heavily as Binance / Crypto.com / FTX have. I added BNB to my watchlist today and am hoping for exciting cratering in the price, with the side bonus of being able to scoop up cheap Bitcoin. The FTX fail was a gift for buyers, would be amazing if lightning struck twice.