CZ Urges Crypto Investors to Verify FUD Amid Bitcoin Drop
- Bitcoin fell below $100,000, its weakest level since June, signaling market volatility.
- CZ cautioned that panic is spreading as false rumors circulate and intensify sentiment.
- Wintermute rejected claims of a lawsuit with Binance, easing tension amid volatile conditions.
The pioneer cryptocurrency price fell below $100K on the early morning of 5th November. Changpeng Zhao (CZ), the founder of Binance, advised investors to verify information from official sources, citing the spread of fear, uncertainty, and doubt (FUD) in the market.
CZ, in a tweet, observed the escalating anxiety within the market and stated, “People are in pain, jittery, and anxious.” However, major market players, especially large investors or whales, have been taking advantage of this situation and spreading misinformation, thereby profiting from the panic.
Amidst the prevailing market sentiment, Bitcoin experienced a 9.8% decline over the past week. CZ recommended that traders depend on official sources and refrain from reacting to unverified rumors.
Bitcoin’s Price Struggles Amid Market Turbulence
The leading cryptocurrency is now down nearly 20% from its all-time high of over $126,000 reached on October 6. The fall has significantly affected market sentiment, with the total cryptocurrency market capitalization dropping by 3.89% to $3.45 trillion. This decline has wiped out most of the gains made in October, which influences sentiment in the crypto market.
Source: CoinMarketCap
The drop in Bitcoin prices follows a highly volatile October, during which the market experienced significant fluctuations. Although analysts expect the market to improve, Bitcoin has dropped below $100,000, hitting its lowest level since late June.
The current volatility surrounding larger market trends, such as regulatory issues and speculative activities by large traders, continues to impact Bitcoin’s short-term performance.
Wintermute CEO Denies Lawsuit Rumors
In addition to the struggles with the Bitcoin price, rumors of a possible lawsuit between Wintermute and Binance have been circulating on social media. These rumors allegedly stated that Wintermute could file a lawsuit against Binance related to the October crash.
The lawsuit reportedly accuses the exchange of problems with its Unified Account margin system, which was allegedly the cause of forced liquidations of various cryptocurrencies. Nevertheless, the CEO of Wintermute, Evgeny Gaevoy, dismissed these rumors, terming them as totally unfounded.
In a statement, Gaevoy clarified that the $700 million transfer to Binance was a regular liquidity management operation and had no relation to any legal action. He also highlighted that Wintermute was not planning to file any action against Binance.
The denial by Wintermute has calmed market speculation, while some analysts attribute the events to broader concerns about market manipulation. As tensions persist, CZ also provided comments on the matter, advising traders to verify information and abstain from responding to unsubstantiated rumors. His remarks were a direct response to the growing FUD, which had already exacerbated market instability.
CZ’s $ASTER Token Purchase Sparks Volatility
With the larger market engagement, the crypto community took notice of a purchase of $ASTER tokens by Changpeng Zhao. $ASTER, a decentralized exchange (DEX) token associated with the Aster protocol, experienced a sharp price surge after CZ announced that he had purchased the tokens with his own funds. His tweet, where he said, “I am not a trader. I buy and hold,” triggered speculation and resulted in a price spike from $0.91 to $1.26.
The acquisition, along with the fluctuating market situation, sparked increased interest in $ASTER, which has seen considerable growth since its launch in mid-September. Despite the initial surge, the price of the token soon declined to approximately $1 due to profit-taking, as some traders speculated that the endorsement would give a substantial boost to the long-term outlook of $ASTER.
