After the news of the purchase between Binance and FTX, which has been on the agenda in the last hours, things have been officially mixed in the crypto markets. The FTX exchange suddenly found itself in a liquidity crisis. Then, the news that Binance would see this situation as an opportunity and buy FTX fell like a bomb on the agenda.
Binance CEO Changpeng Zhao confirmed the news and announced on Twitter that they have started the official process to acquire the FTX exchange.
In the midst of this busy agenda, cryptocurrencies moved up and down, confusing investors. In this article, we will first touch on the latest state of the crypto market, and then the reasons for the decline.
Panic Selling in Bitcoin!
The leading cryptocurrency Bitcoin is experiencing the most active day of the last months as of the date of writing. Starting the day above $20,000, BTC fell to $17,250, the lowest level of the last 2 years, after the deal detail between Binance and FTX.
Bitcoin rose above $18,000 again after the backlash buys.
FTT Lost 80% in Value in One Day!
The native token of the FTX exchange, FTT, rose from $14 to $20 after the news of the acquisition, but then faced huge selling pressure. FTT is currently trying to hold on around $4.50 with 80% depreciation since the beginning of the day.
Why Are Cryptocurrencies Falling?
The liquidity crisis that FTX, one of the largest crypto exchanges, fell into, seriously worried investors. Although the news that Binance will buy the stock market during the day relieved the market a little, the detail announced by CZ turned the direction of the market down again.
Binance CEO Changpeng Zhao explained that the acquisition negotiations are non-binding. In short, if CZ sees a much bigger problem in the FTX exchange, he will be able to cancel the purchase without being subject to a sanction.
On the other hand, the fact that the US Commodity Futures Trading Commission (CFTC) will conduct research on this issue also had a negative impact on the market.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!