Bitcoin sinks under $16K as FTX insolvency fears turn into contagion

Crypto markets crumbled for a second day because the fallout from FTX’s liquidity troubles continued to negatively influence investor sentiment.

All through the day Bitcoin (BTC) worth dropped, falling to a brand new yearly beneath $16,000 as Binance introduced that it will again out of its settlement to accumulate FTX. Buyers had pinned their hopes on a reasonably swift market rebound if Binance was efficiently capable of purchase FTX, however now that the deal is scuppered, BTC and altcoin costs has sold-off additional.

Related articles

Crypto market efficiency. Supply: Coin360

One other issue having a possible influence in the marketplace is a wave of successive liquidations in Solana’s decentralized finance markets. Earlier within the day, cryptocurrency alternate emailed its customers to tell them that every one Solana-based USD Coin (USDC) deposits had been suspended.

A discover on the web site additionally mentioned:

“Please be told that we’ve got suspended deposits and withdrawals of the USDC and USDCT on the Solana Blockchain within the App and Alternate.”

On the time of writing, the value of Solana’s native SOL (SOL) coin is down 34%, buying and selling at $16.10. FTX’s native FTX Token (FTT) can be 32% down on the day and trades for $3.78.

Information from Coinglass reveals $832 million in complete liquidations over the previous 24 hours, and plenty of merchants anticipate the determine to extend.

Complete each day crypto market liquidations. Supply: Coinglass

Associated: Galaxy Digital discloses $77M exposure to FTX, $48M likely locked in withdrawals

For additional backstory on what is going on with FTX, click on here to watch Cointelegraph Markets’ explainer on the state of affairs.