Bitcoin price dips under $17.3K as market panic over FTX's liquidity crunch

November 9, 2022 8:10 pm

Bitcoin price dipped under $17,300 on Nov 9 as the crypto market panicked over the near-collapse of cryptocurrency exchange FTX.

Data from TradingView showed BTC/USD hitting $17,200 on Bitstamp, setting two-year lows and 24-hour losses of more than 10%.

Experts called the near-collapse of FTX another 'alarm warning' for the battered cryptocurrency market and said investors should be cautious for a while.

The crypto market was shocked by the near-collapse of FTX, the third-largest exchange by volume, which inked a bailout deal with arch-rival Binance after a spike in customer withdrawals sparked a liquidity crisis.

Binance agreed to acquired FTX under a non-binding letter of intent signed on Tuesday, Binance CEO Changpeng “CZ” Zhao said the firm will have to conduct due diligence before the acquisition.

FTX came under fire after a CoinDesk article prompted speculation about FTX’s balance sheet.

It is worth noting that FTX billionaire founder and CEO Bankman-Fried made U-turn on Binance in just 24 hours. 

Bankman-Fried said yesterday that competitor Binance was attempting to target FTX after publicly announced liquated all of its FTX holding. Today, Bankman-Fried said that “rumors in media of conflict between our two exchanges” were exaggerated and that the Binance acquisition will help clear out a backlog of customer withdrawals.

 Binance invested in FTX in late 2019, when FTX was a far smaller exchange, Binance exit the investment in July last year. By then FTX had quickly grown into a rival to Binance, which dominates the crypto industry with over 120 million users.