The crypto market is in turmoil again after the FTX-Binance dispute dumps FTT tokens to an all-time low. Bitcoin has fallen to its 2-year all-time low at $16K, while Ethereum declines to $11k. Overall, the market cap has fallen below $1 trillion.
The past two days have been quite eventful for spot trading and market trades. Some people gained; some people lost, but the overall market is in complete chaos and hysteria. Traders are panic selling and unstaking, especially the Solana coin.
Alameda Research had laid most of its investment in different assets as loans. So, when the FTT token lost its value after Binance’s acquisition announcement to not buy FTX, Alameda is now selling out other assets to recover its losses.
This has caused the whole crypto market to crash, after all, the FTT token isn’t a small cryptocurrency as millions of dollars were invested in it. FTX exchange has now paused all withdrawals and the CEO Sam Bankman-Fried has hinted that failure to recover will most likely lead to filing for bankruptcy.
Here’s all you need to know about today’s market:
Bitcoin falls 10% at $16K
Bitcoin(BTC) has recorded a 2-year low in the last 24 hours. The last BTC crash in November 2020 sent the coin to $16K; this November too, the largest cryptocurrency in the world fell prey to the FTT dump and dropped to almost $15k.
Based on CoinMarketCap, the chart shows there’s a huge gap between the high and lows movement, indicating high volatility. When the news about BitDAO dumping FTT came out, the coin fell even more because of the market effect.
Currently, Bitcoin is trading at $16,706 with a market cap of $320B, around 8.29% have been lost so far.
ETH tumbles down 7%
With BTC falling, Ethereum also pummeled down 7% in the range of $11k-$12k. The second-largest cryptocurrency is the lowest since July. Alameda also holds $150 million of its assets in the ETH wallet, which the company can withdraw and sell at any given time, knowing its currently under $3M debt.
Ethereum’s current 24 market volume is at $39B and it has a market dominance of 17.28%. The trading price is at $11k with a high of $12k.
Investment in altcoins has turned out to be a huge risk for investors because, unlike Bitcoin or Ethereum, these crypto tokens suffered the worst. Many people believed that small money-making could come out from these altcoins, but only Bitcoin and Ethereum have managed to remain stable.
Meme coins like Shiba Inu (SHIB) dump cost the coin to lose 2.62%, and it currently trades at $0.000009658 while Dogecoin (DOGE) fell to $0.08148 suffering from a 4.86% loss.
Similarly, other coins also dropped: BNB fell 8.50%, XRP -4%, Cardano (ADA) -3.24%, Polkadot (DOT) -8%, SOL -24.36%, FLOW -8.83%, and many more.
Will the market pick up from here or fall even more? The answer to this question will only come based on how FTX responds to the crisis.