On the night of November 10, bitcoin quotes fell below $15,750 (on the Onextbit exchange). The price of Ethereum has broken through the $1200 level.
Over the past day, the leading cryptocurrencies have fallen in price by 9% and 9.2%, respectively. At the time of writing, digital gold is trading near $16,841, while Ethereum is trading at $1,221.
Hourly BTC/USDT chart of the Onextbit exchange. Data: Trading View.
Hourly chart of ETH/USDT on the Binance exchange. Data: Trading View.
According to CoinGecko, the total capitalization of the cryptocurrency market decreased by almost 9%, to ~$874 billion. Of the largest digital assets, BNB Coin showed the worst dynamics (-12.1% per day).
The price of Solana (SOL) collapsed by 22% (-48% over the week) — the asset left the top 10 by capitalization. This is due to the high concentration of SOL, SRM and other ecosystem tokens in the hands of Alameda Research, which is associated with the troubled FTX exchange.
Amid concerns about the sustainability of SOL, Solana’s validators are actively withdrawing cryptocurrency from staking. According to Solana Compass, over 31 million coins (~$490 million at the time of writing) will enter the market at the end of epoch 370.
The market crash triggered a massive wave of liquidations. According to Coinglass, $694 million worth of positions have been forcibly closed in the last 24 hours, of which almost $60 million is in SOL.
JPMorgan believes that a “margin call cascade” could lead to a decline in Bitcoin quotes to $13,000. JPMorgan strategist Nicholas Panigirtzoglou stressed that this process, caused by the problems of FTX and Alameda Research, has already begun.
On November 6, the head of Binance, Changpeng Zhao, announced the desire of the exchange to get rid of the utility token FTX (FTT). Assets, together with BUSD, totaling ~$2.1 billion, were the result of the company’s withdrawal from the portfolio investment in the platform.
Amid concerns about the financial strength of FTX, the price of FTT collapsed.
On November 8, Sam Bankman-Fried and Zhao announced a strategic partnership. It was intended to resolve a liquidity crisis and suggested a possible takeover by FTX.
On November 9, it became known that Binance refused to buy a troubled competitor.
Recall that Coin Metrics suggested that a possible reason for the collapse of FTX could be the “large financial assistance” that the exchange provided to Alameda Research in the second quarter of 2022.
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