Bitcoin sinks to new yearly low at $16.8K as FTX insolvency fears turn into contagion

Bitcoin sinks to new yearly low at $16.8K as FTX insolvency fears turn into contagion


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

Bitcoin (BTC) price fell to a new yearly low at $16,800 as anonymous unconfirmed sources suggested that after a closer review of FTX’s books, Binance could back out of their agreement to acquire the beleaguered exchange.

Crypto market performance. Source: Coin360.com

Other factors having a potential impact on the market is a wave of successive liquidations in Solana’s DeFi markets. Earlier in the day, Crypto.com exchange emailed its users to inform them that all Solana blockchain-based USDC deposits were suspended

A notice on the Crypto.com website also said:

“Please be informed that we have suspended deposits and withdrawals of the USDC and USDCT on the Solana Blockchain in the Crypto.com App and Exchange.”

At the time of writing, Solana (SOL) price is down 34% and trades at $16.10. FTX’s native FTX Token (FTT) is also 32% down on the day and trades for $3.78

Daily liquidations data from Coinglass shows $832 million in total liquidations over the past 24-hours, and many traders expect the figure to increase.

Total daily crypto market liquidations. Source: Coinglass

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