Bitcoin Crashes Below $8,000 After Alleged Binance Office Raid
Today news surfaced that Binance’s Shanghai office was raided by Chinese authorities. While Binance denied the allegations and the existence of an office in Shanghai, the markets reacted negatively to this news. Bitcoin dropped far below the 8.000 USD mark and is now trading around 7.700 USD.
The community has had mixed reactions to the alleged Binance raid, mainly questioning the validity of the reports and the implications if the allegations are true. Did a Binance office exist in Shanghai? Why would Binance deny the existence of an office? Why would Binance operate an office in a country which has a history of cracking down on cryptocurrency projects? Who is behind the reports of a Binance raid if these allegations turn out to be false? All these questions have been asked repeatedly, and no clear answers have been found as of now.
In a recent announcement, the Chinese government issued a public notice directing all businesses and individuals within China’s jurisdiction to report any dealings with cryptocurrencies and blockchain technology. This notice and the continuing crackdown on crypto businesses make it likely that China would have raided the Binance’s offices if an office existed in Shanghai.
All major cryptocurrencies suffer big losses
The cryptocurrency market reacted expectedly to bad news regarding one of the largest exchanges. At the moment, the top 10 coins are down between 4-10%, with Bitcoin now trading below 7.700 USD. This drop continues the trend of the past few weeks and is putting even more pressure on crypto prices. Some experts believe that Bitcoin could even drop below 5.000 USD in the next few weeks or months, and the bears seem to be taking over again.
What do you think? Did Binance really operate an office in China?