Cryptocurrency prices fell today after crypto giant Binance signed a non-permanent deal on Tuesday to buy a non-US unit of FTX to help cover a ‘funding shortfall’ in the market. change, as part of a dramatic redemption that has sparked new. concern among investors about cryptocurrencies. The move is the latest emergency bailout in the cryptocurrency world this year as investors back away from riskier assets amid rising interest rates.
Major cryptocurrencies initially rallied on news of the deal on Tuesday, but those gains were quickly erased. The price of bitcoin, the world’s most popular digital token, is trading today up more than 12% at $18,204. In contrast, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also fell more than 16% to $1,312.
The value of the global crypto market fell below the $ 1 trillion mark today, having almost fallen more than 11% in the last 24 hours to $ 952 billion, according to CoinGecko.
“Many cryptocurrencies posted double-digit losses in the past 24 hours, reacting to the movement of FTX and Binance. Bitcoin hit a low of $17,166 for the year. Despite the US Fed raising interest rates, BTC continued its impressive performance holding the bar above the $20,000 level, and fell sharply on Tuesday. The second largest cryptocurrency, Ethereum, also fell to its support level at $1,300. Other top cryptocurrencies by market capitalization are also following the same trend. The days ahead will be important for all types of crypto,” said Edul Patel, CEO and founder of Mudrex.
Meanwhile, the price of dogecoin is trading today almost 24% to $ 0.08, while Shiba Inu is down around 15% to $ 0.000010. The performance of other crypto currencies today also decreased such as Binance USD, Avalanche, Solana, Tether, XRP, Terra, Tron, Litecoin, Uniswap, ApeCoin, Polygon, Cardano, Stellar, Chainlink, Polkadot prices fell. 24 hours. FTT, the utility token of major crypto exchange FTX, fell more than 75% to $5.27, according to CoinGecko.
“It was a day of rapid development for the crypto market as the founders of the world’s largest exchanges Binance and FTX went public. The founder of Binance said that he will divest all his FTT holdings due to the growing stability growth and change FTX. Later in the day, Binance announced that it would acquire rival FTX, which upset the crypto market and led to selling pressure led by Binance. Investors are not sure whether the Binance-FTX deal will close, which led to a huge sell-off of the crypto,” said Shivam Thakral, CEO of BuyUcoin.