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In a rare and surprising market phenomenon, coins set for Binance delisting have seen wild spikes. At the start of September, major crypto exchange Binance announced its decision to delist and cease trading on all spot trading pairs for BakeryToken (BAKE), Hifi Finance (HIFI) and Self Chain (SLF) on Sept. 17 at 3:00 a.m. (UTC).
According to crypto focused X account Satoshi Club, BAKE, SLF and HIFI — which have been marked for delisting action on Binance — saw sudden price spikes in recent hours. SLF jumped 50% to $0.0418 and HIFI climbed 28% to $0.0824, but more interesting and particularly noteworthy was BAKE token, which surged nearly 170% in an hour to reach $0.0894.
At press time, BAKE was up 303% in the last 24 hours to $0.1396, having previously reached a high of $0.272 in a sharp intraday surge. Bake's 24-hour trading volume has increased 4350% to $567.41 million, according to CoinMarketCap data.
More often than not, coins marked for delisting often saw price drops as investors often sell out of panic based on negative sentiment. Yet rather the reverse was the case in this scenario, making it somewhat surprising.
What's behind it?
The exact reason for the sharp surge in Bakerytoken remains unknown, but a few explanations are likely.
Binance accounts for the largest volume share for BAKE (more than 60%), hence, the delisting news might have whipped up bearish sentiment for the token.
This is seen in the Binance BAKE long/short ratio, which is below 1, currently at 0.945 according to Coinglass data.
A long-short ratio below 1 signifies bearish sentiment, indicating that more traders are holding short positions (betting on prices to fall) than long positions.
Excessive short selling might have triggered a short squeeze (where prices rise rapidly and steeply as shorts move to cover their positions), resulting in a massive price surge. In this light, caution is warranted as a short squeeze surge might only be temporary.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team