Bitcoin price has dropped as low as $15,625 by Wednesday 9,2022, this is the first time the largest cryptocurrency has fallen below $17,000 since November 2020.
Bitcoin dropped to its lowest level in two years on Wednesday as crypto traders processed the news that Binance exchange retreated from an earlier plan to buy its once-mighty but suddenly ailing rival FTX.
The bitcoin price index dropped fell to $15,625, the lowest since November 2020.BTC was down 14% on Wednesday, the biggest single daily drop since mid-June.
Binance on Tuesday said it would buy the billionaire Sam Bankman- Fried’s FTX. But, backed out on Wednesday afternoon citing “mishandled funds and alleged U.S agency investigations.”
The fear among crypto traders is that the distress at FTX might lead to forced selling which will potentially hit other cryptocurrencies from bitcoin.
“This is another one of those catalysts,” said Bob Iaccino, Path Trading Partners co-founder and chief market strategist. “I wouldn’t be surprised if bitcoin went as low as $9,000, which for me, as someone who got out of bitcoin and is waiting to get in again, would be a positive.”
“I still believe crypto is here to stay but these things need to clean out before you can do serious investments in the space, especially from a traditional finance perspective,” Iaccino said.
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CoinDesk reported previously that the balance sheet of Alameda Research, also under Bankman-Fried’s control, was heavily weighted towards FTX exchange’s token signaling billions of dollars of exposure for which there might not be ample buyers, and thus prone to steep losses in the event of a sell-off.
Binance described its initial agreement as a non-binding letter of intent, and executives said the deal would be subject to due diligence.
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