Crypto Bloodbath: Bitcoin Plummets Below $17K, BNB Crashes 7% (Weekend Watch)

 The cryptocurrency markets took a beating in the past 24 hours, with BTC losing $17K and BNB crashing by around 10%.

The past 24 hours have been tough in the cryptocurrency markets, with the total capitalization dropping by some $40 billion. This comes on the back of major coins charting serious declines and BTC plummeting below $17K.

Bitcoin Goes Below $17K

Binance’s ‘fractured administration’ spurs heated debates and FUD

 Binance is under fire again as FUDs regarding its proof of reserves and regulatory uncertainties, are gaining traction. The exchange is also experiencing massive withdrawals following a story by Reuters that details it’s on the US DOJ’s radar. Other reports regarding failed audits are in the air as well. But what’s going on?

📈 Bitcoin hurtles toward $18,000 as inflation comes in below expectations, crypto stocks soar

Bitcoin and crypto prices soared following lower-than-expected U.S. inflation data for November. Crypto stocks bounced in line with U.S. stock futures. Bitcoin was hurtling toward $18,000 shortly after U.S. CPI data was released today.

Ether rose 6% following the news, trading at about $1,327. Binance's BNB token was little changed on the information as withdrawal issues continue to hamper the token. Dogecoin and Ripple's XRP jumped over 4%, while Cardano's ADA tacked on 1.7%. Interest rate traders are now pricing in an 81% chance of a 50 basis point increase by the FOMC tomorrow, according to the CME's FedWatch tool. 

💰 Solana Records Biggest Loss on One DeFi Metric As BNB Chain Shows Resilience: DappRadar

DappRadar report finds that last month’s crypto market meltdown caused the total value locked (TVL) on smart contract platform Solana (SOL) to freefall. The data acquisition and analysis firm reports that Solana saw a 71% decrease in TVL month-on-month from October to November, crashing to $366 million.

The TVL of a blockchain represents the total capital held within its smart contracts and is calculated by multiplying the amount of collateral locked into the network by the current value of the assets. SOL is trading for $13.70 at time of writing. The 18th-ranked crypto asset by market cap is down more than 57% since November 1st when it was trading at $32.24.

Bybit Launches Merkle Tree-Verified Proof of Reserves

ByBit has joined the ranks of major crypto exchanges such as Binance to publicly provide its proof of reserves. 

The Dubai-based platform announced the launch of a Merkle Tree-based proof-of-reserve system to enable users to verify their assets deposited into the exchange as well as Bybit’s holdings.

The verification is available in both trading and funding accounts.

Bybit said that the new feature will also allow verification of the exchange’s wallet ownership and that assets are held with a 1:1 ratio.

Bitcoin will find its real price if major crypto exchanges fail, investor says

Former Brighterscope CEO Mike Alfred believes that paper Bitcoin (BTC) trading is what’s keeping the cryptocurrency’s current dollar price in place.

“Counterfeit bitcoin”

In a Dec. 12 tweet, the self-described “value investor” claimed that people were trading Bitcoin that didn’t exist on the chain and that the activity was artificially propping up BTC prices in the interim.

In the tweet, Alfred also contended that Bitcoin would only find its actual market price in the event of the failure of crypto exchanges such as Nexo, KuCoin, and Crypto.com, which serve as fractional reserve platforms for BTC.

FTX Japan Has Until March 2023 to Cease All Operations

 The Kanto Local Finance Bureau will supposedly halt FTX Japan’s activities on March 9, 2023.

The Japanese authorities reportedly extended the business suspension order to FTX Japan until March 9, 2023.

Initially, the company had to cease all services on December 9.