Bitcoin, Ethereum, Dogecoin Crash: Analyst Says Crypto’s ‘White Knight’ Needs Binance Rescue Causing ‘Wave of Uneasiness’ – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Major cryptocurrencies crashed Tuesday night as the global cryptocurrency market capitalization plunged 10.4% to $916.2 billion at 8:09 p.m.
.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -10.35% | -10.2% | $18,420.53 |
| Ethereum ETH/USD | -15.4% | -16.6% | $1,323.48 |
| Dogecoin DOGE/USD | -21.1% | -38.8% | $0.08 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| BinaryX (BNX) | +2.9% | $148.90 |
| PAX gold (PAXG) | 2% | $1,701.01 |
| Pax Dollar (USDP) | +0.01% | $1 |
See also: Best Cryptocurrency Exchanges
Why it matters: Bitcoin’s price fell below the $17,500 mark on Tuesday — the lowest market price in two years, Santiment noted.
“Overzealous traders on exchanges tried to short [BTC] when prices showed a very mild recovery, expecting further falls. Liquidations took place instead,” the market intelligence platform tweeted.
A “significant liquidity crisis” at the second-largest cryptocurrency exchange, FTX, means the exchange will be acquired by rival Binance.
The development happened after Sam Bankman-Fried-led FTX asked for help, according to Changpeng Zhaomanaging director i Binance.
Edward Moyaa senior market analyst at OANDA, said cryptocurrencies were “tumbling” following the liquidity crunch at FTX and the sale of the company.
“Today is a bad day in crypto. Binance had to step in to save Sam Bankman-Fried’s FTX crypto exchange.”
Bankman-Fried “has been the white night during this crypto winter, and a liquidity crisis for him has sparked a wave of turmoil across the crypto market,” the analyst said in a note seen by Benzinga.
“Many crypto companies are likely to be vulnerable to further selling pressure here given the current macro backdrop, but that likely won’t deter much of the institutional money still coming in or locked into the space.”
The massive plunge in cryptocurrency valuations contrasted with stocks ending in the green on Tuesday. The S&P 500 and Nasdaq ended the day 0.6% and 0.5% higher, respectively. Stock futures were largely unchanged as investors awaited the results of the US midterm elections.
Amsterdam based cryptocurrency trader Michael van de Poppe tweeted on Tuesday that the “big ball game” between FTX and Binance was killing the markets.
Justin Bennett said Zhao was the “aggressor” in the FTX-Binance saga and had “a chance to settle things without injury. He chose violence.”
“I don’t support CZ or SBF. I’m on the side of crypto and none of this looks good for regulators who are losing confidence by the minute,” the trader said.
Meanwhile, total liquidations in Bitcoin futures markets have exceeded $121 million during the recent selloff, according to Glassnode. Most of the liquidations—$106 million—were long positions.
Read next: Binance to provide proof of reserves after FTX acquisition deal announced
Illustration by Graphicle on Shutterstock
