With almost $400 million in liquidations, the last 24 hours showed no mercy to Bitcoin (BTC) and altcoin traders. Meanwhile, Binance CEO Changpeng "CZ" Zhao warns that we should not trust the narratives distributed by Twitter "insiders" allegedly knowing the only true reasons for the ongoing massacre.
Binance's CZ slams "narratives" about reasons for altcoin sell-off
Despite many people on crypto Twitter claiming they know why altcoins are bleeding right now, nobody can be sure about the roots of this plunge. As such, we should not listen to "Binance FUD," "Robinhood FUD" and other conspiracy theories that are popping up here and there on Twitter, CZ says.
Why is the market is going up or down? No one really knows. A lot of people claim to know, and can often pin it on a single (often wrong) reason. In reality, there are many sellers and buyers in a market, everyone may have their own reasons. A few examples.— CZ 🔶 Binance (@cz_binance) June 10, 2023
False narrative:… pic.twitter.com/LQDkEOK2as
Namely, Binance CEO slammed three "exclusive insides" that gained traction in the last hours. First, he assured that Binance (BNB) does not increase the share of cash in its holdings. Some accounts attributed altcoins' price annihilation to this hypothetical process. Moreover, Binance (BNB) uses its cash to increase cryptocurrency holdings.
Also, "Bitcoin Expert India," a pseudonymous Twitter account, is spreading rumors about Robinhood's decision to forcefully market-sell all tokens it is going to delist. As per this theory, Robinhood can dump over $1.3 billion in Cardano (ADA), Solana (SOL), Polygon (MATIC) over the next two weeks. Binance's CEO admits that he has "no idea" about such prospects.
Finally, he asks not to fall victim to the "U.S. ban," "China ban" narratives that gain traction during every regulatory attack. His followers recalled that such alarming predictions have been spinning on Twitter for at least seven years, but every time the market erases all losses caused by panic-driven sell-offs.
As covered by U.Today previously, Binance (BNB) and its leader CZ are under fire in the U.S. as the SEC decided to sue the service and its founder for alleged offering of unregistered securities to American citizens.
Crypto Twitter caught March 2020 vibes
Also, the SEC proclaimed that almost all major altcoins should be regulated as securities. This decision triggered panic on altcoin markets.
For the first time in months, altcoins from the top 50 lost over 25% of their valuations overnight. Large-caps mentioned in the SEC lawsuit as potential securities suffered the worst.
For instance, Polygon (MATIC) lost 27.3% in 24 hours, while EOS, Aptos (APT) and Optimism (OP) lost 24-25%. In the meme coin segment, PEPE lost over 23% of its price.
As per CoinGlass (ex. Bybt) data, over $350 million in crypto positions were liquidated over the last 24 hours; 90% of them were longs. The previous day was the most painful for bulls in many months.