December 6, 2022

Bitcoin Drops to New Yearly Low at $16.8K as FTX Bankruptcy Fears Turn Contagion

Bitcoin Drops to New Yearly Low at $16.8K as FTX Bankruptcy Fears Turn Contagion

Cryptocurrency markets collapsed for a second day as the fallout from FTX’s liquidity issues continued to negatively impact investor sentiment.

Bitcoin (BTCThe price fell to a new annual low of $16,800 as anonymous, unconfirmed sources indicated that after a closer review of FTX records, Binance could renege on its agreement to acquire the embattled exchange.

Crypto market performance. Source: Coin360

Another factor that has a potential impact on the market is the cascading wave Liquidation in Decentralized Finance Markets in Solana. Earlier today, cryptocurrency exchange Crypto.com By email to inform them that all Solana based US Dollars (USDCDeposits are suspended.

A notice on Crypto.com also said:

“Please be advised that we have suspended USDC and USDCT deposits and withdrawals on the Solana Blockchain in the Crypto.com app and exchange.”

At the time of writing, the price for Solana’s original habitat is SOL (SolThe coin is down 34%, and it is trading at $16.10. The original FTX token for FTX (FTT) is also down 32% on the day and is trading at $3.78.

Data from Coinglass shows $832 million in total liquidations over the past 24 hours, and many traders expect this figure to rise.

Total daily cryptocurrency market liquidations. Source: Coinglass

Related: Galaxy Digital discloses $77 million exposure to FTX, likely to close $48 million in withdrawals

For more backstory of what’s going on with FTX, click Here to watch Cointelegraph Markets explanation on the situation.