Binance: Is CZ’s exchange dictating Bitcoin’s [BTC] price and the market?
Over the past couple of months, the crypto community has witnessed a lot of activity in terms of major price hikes and announcements. Bitcoin [BTC] experienced a massive price pump, which at press time, placed its valuation at $7937.77. CZ’s Binance has also been in the spotlight after the exchange was hacked, costing it $7000 BTCs worth $41 million.
Surprisingly, the prices of Bitcoin [BTC] did not take a major hit after the hack. CZ even announced that the necessary updates and steps had been carried forward, ensuring the security of the platform.
Bitcoin [BTC] experienced another surge following the hack, which took the valuation above $8000. However yesterday, Binance released another update and stated that the exchange will be suspended for a systems upgrade, which would be carried out for a period of 6-8 hours on 15 May at 3:00 AM [UTC].
It was observed that the price of Bitcoin [BTC] was only slightly affected over the time period during which the price plummeted by approximately $200. This also had a collectively depreciating effect on the surging market, which was highly volatile just 24 hours prior the update.
Twitter user, @CryptoNomad77, opined on the matter and stated,
“Amazingly the entire market quiets down. Talk about Binance being a gigantic exchange for the world. Thanks Mr.CEO for making sure we are covered for the future. Arigato!”
A buzz was soon created, alleging that Binance was slowly dictating the collective rise and fall of the market.
CZ replied back to the aforementioned tweet, stating,
“When big exchanges do upgrades, price won’t move much, due to the “pull back” effective when the deep order book resumes trading.”
In light of this speculated scenario, Tim Copeland also pitched in, stating that he was interested in watching Bitcoin [BTC] price movements, once the exchange was live again. He added that if the prices were to plummet once the exchange was live, it would be indicative of fake numbers that appear on other exchanges. If the price was to remain stable or go up, it would practically imply a huge increase in demand.