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