After the world’s largest cryptocurrency exchange, Binance Global Inc. announced it would no longer acquire FTX.com just 24 hours after making the offer; cryptocurrency prices fell in Thursday morning trading in Asia.
Cryptocurrency traders are concerned that the turmoil at FTX or Bankman Trading Fried’s firm, Alameda Research, could lead to forced selling, which could hurt the value of many cryptocurrencies, including bitcoin, ether, and SOL.
According to Bob Iaccino, Co-Founder and Chief Marketing Strategist at Path Trading Partners, “This is another one of those catalysts. I wouldn’t be surprised if bitcoin went as low as $9,000, which for me, as someone who got out of bitcoin and is waiting to get in again, would be a positive.”
He continued, “I still believe crypto is here to stay but these things need to clean out before you can do serious investments in the space, especially from a traditional finance perspective.”
Impact on BTC
According to CoinMarketCap, Bitcoin’s value hit a two-year low of US$15,682 (a decrease of 8%) before recovering to US$16,829 by 4 p.m. in Hong Kong. After falling to $1,083, which was its lowest price since June, ether went back up to $1,197, which is a 7% drop.
Blake Cassidy, the CEO of an Australian company called Bamboo 61 Pty Ltd. which lets people make small investments in cryptocurrency, recently said that the FTX issue was to blame for the recent volatility in the market.
Impact on FTT
FTT’s price fell 38.8 percent to $2.90 within 24 hours and almost 90 percent within 48 hours from US$22 (before concerns about FTX’s finances hit the market). Binance CEO Changpeng Zhao’s series of tweets on Sunday announcing Binance would sell its FTT holdings, citing “recent revelations” about FTX, caused the slide.
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