The crypto market celebrated a huge gain in the price of key cryptocurrencies a few days ago. Bitcoin has recovered spectacularly, clearing the £16895.46 threshold and reaching £18162.62. The story immediately changed, however, when the FTT crash took the other tokens down with it. Many assets have reached fresh all-time lows due to the ongoing FTX crisis in the crypto industry.
According to recent sources, Bitcoin has fallen to a two-year low of £13093.98, leaving the market with a £168.95 billion loss. It all started with a conflict of interest between Binance and FTX, which prompted the former to sell its FTT holdings illegally. Shortly after the feud, FTX liquidated its ETH holdings due to reports of insolvency.
The cascading effect has hit Bitcoin. Bitcoin crashed to £14361.14 hours after reaching a multi-week peak above £18162.62. As the crisis worsened, Bitcoin fell again on Bitstamp yesterday. Finally, bitcoin fell below £13093.98, its lowest level since November 2020.
Although Bitcoin has regained more than £844.77 since the last drop, its valuation is 6.81% lower remains below the psychological mark. Nonetheless, it has a market valuation of more than £267.79 billion and a 38.4% market share.
Bitcoin is not the only cryptocurrency that has taken a hit in the market recently; other cryptocurrencies have taken much more. Ethereum, for example, fell from £1351.64 to roughly £929.25 before recovering slightly above £1098.20.
Binance Coin (BNB) also dropped 8.87% after a brief surge near £337.91 following news of the FTX acquisition. BNB was further pushed down by news that Binance would no longer pursue the FTX acquisition.
Meanwhile, FTT is in a bad situation. The cryptocurrency has lost 42% of its value and is now trading at £2.33. Binance has withdrawn its plans to acquire FTX due to the circumstances surrounding the exchange’s status, particularly the reported investigations into the firm.
Binance stated that it aimed to support FTX in providing liquidity to settle its consumers. It cannot, however, ignore the fact that FTX misused customer funds. Binance slammed FTX’s unethical business tactics, claiming that such actors should be barred from the market.
Binance’s remarks are consistent with Coinbase CEO Brian Armstrong’s views, which he expressed on Tuesday. Armstrong believes that a clear legal framework and the use of decentralized exchanges will prevent crises like the FTX crisis from occurring.
