Crypto market plummets below $1 trillion overnight, following FTX troubles

    09 Nov 2022

    The price of Bitcoin and Ethereum has fallen in the last 24 hours, with the total crypto market cap now sitting at $914 billion, a 10.6% drop in the past 24 hours. The surprise FTX acquisition claim by Binance has sparked a significant overnight drop for Bitcoin and Ethereum.

    Ethereum’s price now sits at around $1,229, 17% down in the last 24 hours, according to data from CoinGecko. This now places the second-largest cryptocurrency by market capitalization at 74.1% from its historical high of $4,878.26 last November. Meanwhile, Bitcoin fell about 10% to $17,809.

    However, holders of the two biggest currencies massively outperformed anyone holding FTX’s FTT tokens. FTT fell 75.4% to just $4.37 in the past 24 hours, for a total weekly collapse of -83.1%.

    Binance’s surprise FTX acquisition claims have likely been one of the driving factors behind these market moves.

    Previously, Binance CEO Changpeng Zhao claimed Sunday that he would begin selling the firm’s FTT holdings from an earlier equity position in FTX in 2019. FTT is FTX’s native token that holders can use to enjoy discounts and other perks.

    This move sparked panic in the market, leading to mass withdrawals from FTX until FTX CEO Sam Bankman-Fried announced Tuesday a preliminary agreement to be acquired by Binance. 

    Despite the crushing statistics today, this isn’t by any means the worst day in the history of the two largest currencies. Covid-19 pandemic restrictions around the world triggered a 37.14% one-day fall in the price of Bitcoin and a 42% drop for Ethereum on March 12, 2020.

    Further, the collapse of controversial crypto lender Celsius’s market on June 14, 2022, led to a 12% loss for Bitcoin and an 8% loss for Ethereum.

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