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A few days ago, the crypto market celebrated a significant rally in the price of major cryptocurrencies. Bitcoin made a remarkable recovery, surpassing the $20,000 to $21,500 level.
However, the story quickly changed when the FTT crash dragged the other tokens down. Due to the ongoing FTX crisis in the crypto space, many assets have registered new lows.
The latest reports show that BTC has hit a two-year low, plummeting to $15,500 and exiting the market at a loss of $200 billion. It all started with a conflict of interest between Binance and FTX, which prompted the former’s decision to liquidate its irregularities in FTT’s holdings. Not long after the feud, FTX liquidated its ETH holdings amid rumors of insolvency problems.
Bitcoin plummets to a two-year low
The cascade effect landed on Bitcoin. Within hours of the celebration, the multi-week high above $21,500, Bitcoin crashed to $17,000. As the crisis continued, Bitcoin registered another drop on Bitstamp yesterday. Finally, bitcoin dropped to $15,500, an all-time low since November 2020.
Although BTC has recovered more than $1000 since the last slump, its valuation – 6.81% lower – is still below psychological level. Nevertheless, it maintains a market cap of over $317 billion and a 38.4% dominance.
Bitcoin is not the only recipient of the hard blow in the market lately; other cryptocurrencies got even more. For example, Ethereum fell from $1,600 to nearly $1,100, but recovered slightly above $1,300.
Binance Coin (BNB) also fell, falling 8.87% after a brief rally to $400 with news of the FTX acquisition. BNB pushed further down with reports that Binance would no longer proceed with the FTX acquisition.
Solana, which fell to $9 yesterday, is now trading at $14 with a 17% drop. Given the news about the upcoming event to unlock SOL tokens, Solana may face more volatility today. The total crypto market has lost about $200 billion since the FTX/Binance feud began.
FTX Token Falls Further as Binance Withdraws Acquisition Plans
Meanwhile, the situation of FTT is dire. The token has incurred an additional 42% loss in value and is now trading at $2.76. Given the circumstances surrounding FTX’s situation, including the alleged investigations against the company, Binance has pulled out of its plans to take over the exchange.
In the AnnouncementBinance noted that it hoped to help FTX provide liquidity to settle its clients. However, it cannot ignore the fact that FTX has misused customers’ money. Binance condemned FTX’s bad business practices and said such players should be removed from the market.
The crypto exchange also said a regulatory framework and decentralization transition would strengthen the crypto industry.
Binance’s comments are in line with the views of Coinbase CEO Brian Armstrong, which he broadcast on Tuesday. Armstrong believes that a clear regulatory framework and the introduction of decentralized exchanges will prevent problems such as the FTX crisis.
Featured Image From Pixabay, Charts From Tradingview