Recent market turbulence has sparked concerns over Binance’s cryptocurrency holdings. Social media reports suggest the exchange conducted massive selloffs of Bitcoin and Ethereum. These claims coincide with significant price drops across major cryptocurrencies.
Market Impact and Price Movement
Bitcoin’s price action has been particularly volatile. BTC dropped to $92,000 on February 3rd. Despite a brief recovery to $98,000, it now trades at $95,740. This represents a 2.6% decline in 24 hours. Ethereum follows a similar pattern, trading at $2,600 with a 4.2% decline.
Understanding the Allegations
Market analyst AB Kuai.Dong highlighted dramatic changes in Binance’s holdings. On-chain data shows a 94.1% reduction in Bitcoin holdings and a 99.9% drop in Ethereum between January and February. Other affected assets include:
- BNB: 16.6% reduction
- Solana: 99% reduction
- Tether USDT: 99.9% reduction
Binance’s Response and Market Implications
Binance quickly addressed these concerns. The exchange clarified that the observed changes reflect internal accounting adjustments. They emphasized that user funds remain secure. This response helps maintain market confidence, though price volatility continues.
Technical Analysis and Market Outlook
The current market structure suggests a period of consolidation. Support levels for Bitcoin exist around $92,000, while resistance sits at $98,000. Trading volumes indicate cautious market sentiment. Ethereum’s correlation with Bitcoin remains strong, suggesting similar price action patterns.
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The market’s reaction to Binance’s clarification demonstrates the importance of transparent communication in the crypto space. Traders should monitor exchange flows and institutional movements for potential market impacts.
Tags: Binance, Bitcoin, Ethereum, Crypto Markets, Exchange Analysis
Source: NewsBTC