Here’s Why Bitcoin Is Pumping, According to a Redditor

Here’s Why Bitcoin Is Pumping, According to a Redditor

Time Stamp: February 17, 2023 11:08 AM
Source Node: 1963292
  1. Bitcoin’s unexpected price increase leaves crypto industry participants baffled.
  2. A Reddit user believes Binance CEO CZ is manipulating the market.
  3. BUSD’s market cap has fallen by millions per hour while its trading volume has increased massively.

A recent surge in Bitcoin’s value has left many in the crypto industry wondering what is causing the sudden spike. Nonetheless, one Reddit user has a hypothesis that attributes to manipulation by institutional players, specifically Binance CEO CZ.

The Redditor’s theory posits that the Securities and Exchange Commission (SEC) is going after Binance’s stablecoin, BUSD, issued by Paxos. Since Binance holds a significant quantity of BUSD in its assets, this action has put the firm in a hazardous situation.

Further, to mitigate risk, Binance may be buying up BTC with its BUSD holdings, leading to an artificial increase in Bitcoin’s value. As a result, there has recently been a sharp increase in the token’s trading volume.

Moreover, the Redditor user claims that the Binance action is a significant injection of money into the market, but it’s difficult to say what impact it will have in the long run. 

However, while the trading volume of BUSD in the last 24 hours has been massive, with over $11 billion worth of trades, the market cap is falling by the millions as each hour passes. Notably, this money is not flowing into other stablecoins like Tether or USDC, as their market caps have not increased at the same rate.

The Netizen concludes that although the surge might continue, investors should be wary of riding the wave of investor enthusiasm, as the current level of rigging may not be durable. The Redditor user continued to call for readers to research and develop their own conclusions about the idea rather than simply following market patterns.

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Tags: Bitcoin newsBUSDCrypto marketPaxos

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

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