Robinhood rumored to sell billions in competitive coins, CZ comments on market crash and rumors: "Maybe you know more than I do"

The cryptocurrency market experienced a sharp decline starting at 12:15 (Taiwan time) on June 10th, with BTC and ETH both falling below $26,000 and $1,800 respectively, revisiting the lows from when the SEC sued Binance. Among the top ten in market capitalization, the biggest drop was seen in ADA, SOL, and MATIC, which Robinhood announced would be delisted. Rumors began circulating within the community that Robinhood is preparing to sell billions of dollars worth of ADA, SOL, and MATIC. In the face of widespread FUD in the market, CZ also made comments on this issue via a tweet.

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 seller and buyers in a market, everyone may have their own reasons. A few examples.

False narrative:… pic.twitter.com/D3x5gd2qXO

— CZ 🔶 Binance (@cz_binance) June 10, 2023

BTC and ETH Drop Below $26,000 and $1,800

Although the crypto market seemed to have put lawsuits behind in the past two days and showed signs of recovery, the market took a sharp downturn starting at 12:15 on June 10th, Taiwan time. BTC and ETH plummeted back to the lows seen when SEC sued Binance, causing an overall market crash.

Among the top ten cryptocurrencies by market capitalization, excluding stablecoins, ADA, SOL, and MATIC, which were recently delisted by Robinhood, experienced the deepest declines.

Institutional Responses to SEC Lawsuits: Crypto.com Pauses Institutional Services, Robinhood Delists ADA, SOL, MATIC

The total market capitalization of cryptocurrencies has also dropped back to mid-March levels as shown in the chart below.

One of the key figures in the SEC lawsuit against Binance, CZ, had something to say about today's market crash. He specifically clarified two points.

CZ: Binance Reserves Increasing, Not Decreasing

CZ tweeted:

Why do markets go up or down? No one really knows the reason. Many claim they do and often attribute it to a single reason, usually fake news. In reality, there are many sellers and buyers in the market, and each person may have their own reasons.

CZ specifically referenced two tweets. Twitter user Googly pointed out changes in Binance's reserve proof assets along with a sudden drop in crypto assets. CZ clarified that:

The fact is that Binance's fiat/stablecoin reserves used for short-term payroll or expense expenses have decreased, while our cryptocurrency reserves have increased in the past few months/weeks/days.

Another Twitter user pointed out that due to the SEC lawsuit, the market is in a selling phase with trading volumes at multi-year lows. It is speculated that Robinhood's $1.3 billion worth of competing coins, excluding BTC, ETH, and DOGE, may be sold in the market within the next two weeks, with ADA, SOL, and MATIC being the heaviest assets to be sold.

In response to such rumors, CZ seemed helpless, stating:

I don't know, maybe you know more than I do.

Other bullish/bearish views include the US crypto ban, and China/Hong Kong leaning towards lifting the ban.

However, CZ emphasized that "greed and fear" are the emotions users need to manage most when facing the trading market, while also emphasizing the need for risk management. Binance's priority is to ensure the platform runs smoothly.