A few days ago, the cryptocurrency market was celebrating a significant increase in the price of the major cryptocurrency. Bitcoin crossed the $20K level and made a significant correction to $21,500.
However, the story quickly changed as the FTT crash pulled other tokens down. Due to the ongoing FTX crisis in the crypto space, many assets have registered new all-time lows.
Latest reports suggest BTC has hit a two-year low, falling to $15,500 and causing the market to lose $200 billion. It all started with a conflict of interest between Binance and FTX, which led to the former’s decision to liquidate its FTT Holdings irregularities. Shortly after the controversy, FTX liquidated its ETH holdings amid rumors of bankruptcy issues.
bitcoin falls to two-year low
The Cascade Effect landed on bitcoin. Within hours of the celebration, a multi-week high above $21,500, bitcoin crashed to $17,000. As the crisis continued, bitcoin posted another drop on Bitstamp yesterday. Eventually, bitcoin fell to $15,500, its lowest level since November 2020.
Although BTC has recovered above $1000 since the last drop, its valuation – down 6.81% – is still below psychological levels. Nevertheless, it maintains a market capitalization of over $317 billion and a 38.4% dominance.
Bitcoin isn’t the only receiver of a hard hit in the market lately; Other cryptocurrencies became even more so. For example, Ethereum fell from $1,600 to around $1,100, but bounced back slightly above $1,300.
Binance Coin (BNB) also went down, falling 8.87% to $400 after a short rally with news of the FTX acquisition. BNB further reports that Binance will no longer proceed with the FTX acquisition.
Solana, which fell to $9 yesterday, is now trading at $14, down 17%. Solana could face more volatility today considering the news of the upcoming SOL token unlocking. The total crypto market has lost around $200 billion since the start of the FTX/Binance controversy.
FTX token falls further as Binance withdraws acquisition plans
Meanwhile, the FTT situation is dire. The coin has lost an additional 42% in value and is now trading at $2.76. Given the circumstances surrounding the FTX situation, including the alleged investigation against the firm, Binance has pulled out of its plans to acquire the exchange.
In AnnouncementBinance said it hopes to assist FTX in providing liquidity to settle its customers. However, this cannot ignore the fact that FTX misappropriated customer funds. Binance condemned the poor business practices of FTX, saying that such actors should be removed from the market.
The crypto exchange also stated that a regulatory framework and decentralized transition will strengthen the crypto industry.
Binance’s comments are in line with the opinion of Coinbase CEO Brian Armstrong, which he broadcast on Tuesday. Armstrong believes that a clear regulatory framework and adoption of decentralized exchanges will prevent problems such as the FTX crisis.
Featured Image From Pixabay, Charts From Tradingview