Bitcoin price risks $17,000 amid claims Binance may reject FTX takeover
Bitcoin (BTC) fell below $17,000 on November 9 as rumors spread of crypto exchange Binance backing out of a deal to buy embattled rival FTX.
Binance CEO: “Don’t Trade FTT”
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $16,936 on Bitstamp before pulling back.
The latest dive hit an already shaky market, which had reacted badly to the news that FTX had asked Binance for financial assistance.
In a memo to employees shared on Twitter, Binance CEO Changpeng Zhao (known as “CZ” in the crypto industry) asked them to refrain from trading FTX’s internal FTT (FTT) token.
“I want to remind everyone: DO NOT exchange FTT tokens. If you have a bag, you have a bag,” it said.
While he said he “wouldn’t comment” on the FTX takeover deal, an unnamed source later told industry news CoinDesk that Binance had doubts about going through with it.
This in turn depressed sentiment in the crypto market, leading to a fall that saw heavy losses across Bitcoin and altcoins.
Liquidations told the story, with $860 million worth of long and short positions wiped out in the 24 hours at time of writing, according to monitoring resource Coinglass.
FTT/USD traded at just $3.60 on the day, down from $22 just two days earlier, prompting comparisons to the Terra LUNA debacle.
“Honestly, it feels strange, but things will get better from now on,” Michaël van de Poppe, founder and CEO of trading platform Eight, predicted.
“Mistakes must be made to improve a system and that’s what happened with Mt. Gox, $LUNA and now FTX. It may feel like we’re on the verge of collapsing crypto entirely, but Bitcoin and crypto are here to become.”
CPI day creeps up on crypto
With the crypto community distracted with internal issues, few paid attention to the November 10 United States Consumer Price Index (CPI) print.
Related: Funding rates hit 6-month high ahead of CPI – 5 things to know in Bitcoin this week
A source of volatility in its own right, the event is normally given full attention, but even the US midterm elections took a back seat this week.
“I’m just waiting to see how the CPI and how the market reacts Thursday,” trader Josh Rager summed up in part of a Nov. 8 tweet.
The US dollar index left modest gains on the day, heading below 110, while both the S&P 500 and Nasdaq Composite Index were treading water.
“Obviously, Bitcoin is again priced to buy for long-term spot, but I’m happy to wait to see how the market reacts to how the FED handles things.”
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