Binance & FTX Turn Hawkish, Causing Crypto to Crash! This Could Be the Point at Which Markets Recover!
In recent times, the crypto markets have been responding widely to external factors like the US rates, Elon Musk’s moves & mentions, and now the Binance and FTX brawl. The markets that ignited the November trade on a bullish note trembled heavily and dropped hard in minutes. The Bitcoin price, which sustained hard above $20,000, slumped below the levels, while the Ethereum price slashed below $1500.
What Went Wrong?
CEO of FTX, Sam Bankman-Fried (SBF), who was considered the king of crypto, has landed in deep trouble as Alameda Research & FTX are presumed to be on the brink of insolvency. A popular exchange, Binance, which had millions of FTT tokens, announced its plans to liquidate all of them. Very soon, the FTT price dropped hard by more than 30% to drop below $16.
On the other hand, the FTX’s Ethereum balance plummeted heavily from more than 300K to as low as 32K in just a couple of days.
In just two days, the amount of #Ethereum held in #FTX's main wallet has dropped from 322k to 32k. At one point, the wallet was bleeding 500 $ETH per minute. With the ongoing feud between @SBF_FTX and @cz_binance, expect continued unpredictability. — Santiment (@santimentfeed) November 7, 2022
Moreover, the outflow of the ETH wallet was recording huge withdrawals of nearly 500 ETH per minute. This created a huge FUD within the crypto space with a speculation of a LUNA-UST-like crash to be fast approaching.
The fear within the market continues as Alameda Research, a leading principal trading firm, founded by SBF, could dump all its tokens soon. Besides the major tokens like USDC, ETH, & BTC, the platform also holds other assets like UNI, MATIC, SHIB, RNDR, ORBS, etc. Out of these, MATIC holdings have already dropped by 80% in a single day.
Meanwhile, the latest activity suggests countless outflows of ETH, USDT, and USDC have been recorded while, 1300 UNI, 612K MATIC, & 48K LINK 4.63M BIT. These huge transfers have created a huge amount of FUD within the markets that may result in steep corrections in the coming times. However, a bearish wave much like that during the LUNA-UST crash may be expected in the coming days, which may wipe out the previous gains.Source