- The current Crypto market crash is having a broader impact on digital currencies
- FTX also filed for bankruptcy after millions of traders withdrew their funds from the platform.
- Bitcoin has dropped by over 20 % in the last week.
The crypto market has been in a negative direction for the following few weeks. Currently, the market is bullish as the significant coins drop day by day.
Last week’s crash brought the most significant drop in the price of cryptocurrencies prices today. Bitcoin and Ethereum, like crypto-currency, have seen a fall of over 20 % this week.
On Wednesday, the cryptocurrency market has seen a sudden drop that impacts Bitcoin, Ethereum, Solana, and some meme coins. For example, a meme coin, Shiba Inu, today has faced a fall of up to 6%.
The crypto market events and a sudden battle between Binance and FTX drive this sudden market drop. The value of Bitcoin was currently trading at its lowest $16,500.
Ethereum Coin was the most trending coin in the last week after the merge in October, its biggest upgrade in years. While TerraClassicUSD was the biggest gainer.
Just a day ago, Ethereum classic was the biggest gainer. On Wednesday, Ethereum Classic was the most trending crypto.
The trading volume in the DFIs coins section was about USD 6.85 billion. At the same time, the importance of all stablecoins is $80.19 billion. The top gainer, TerraclassicUSD, was up by 6.99% to $0.03935, while the top loser was Ethereum Classic, down by 16.05% to $33.46.
The price of Bitcoin dropped in recent months between and Binance FTX saga while it was trading high in august at the price of $16,000. The collapse has wiped out the 100 billion fund causing a sharp downfall in the market.
Digital assets are considered one of the most volatile digital assets, which confuses investors about whether they should buy digital currency. The current market slump is the result of the app events, which caused these coins to slump.
Why Is Crypto Crashing?
While several factors are responsible for the crypto market’s sudden decline, the main reason is the FTX and Binance battle, one of the major events of the crypto world.
According to a report by the wall street journal, FTX has lent billions of dollars of the customer’s funds to Alameda Research, a trading firm, which questioned the customer’s fund security and the credibility of the platform.
Unlike Binance, Bitcoin and Altcoins are traded on the most well-known and other digital exchanges. However, Binance holds more than 50 % crypto market sum; as a result, it widely affects the crypto market prices.
The collapse shook the crypto industry and affected over 500 cryptocurrencies and 1000 plus exchanges. Binance and FTX are one of the biggest rival crypto competitors.
Sam Bankman-Fried and Changpeng Zhao are one of the biggest platform owners seen as the significant key players in these events.
When the FTX liquidity issue was raised, Binance CEO Changpeng Zhao announced that Binance would acquire the entire FTX platform. Later Binance backed off from the deal, providing a shockwave through the market.
“As a result of corporate diligence, as well as the latest news reports regarding mishandled customer funds and US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com, Binance clarified on Twitter.”
In light of all these, bitcoin news has seen its most significant drop below $16,000 for the first time after two years. Ethereum also experienced a similar fall below $1,200 for the first time after the crypto crash of the summer of 2022.
What is happening to the value of crypto prices, and why?
Undoubtedly, cryptocurrencies are volatile assets. They are vulnerable and can see the rise and fall at any time. The sudden crash resulted from the FTX and Binance drama which affected the entire crypto industry.
Cryptocurrency Prices today
Let us know about the price fluctuation of cryptocurrencies prices today on Wednesday.
Bitcoin
Bitcoin price fell by 5.74% to $18,665.41, and a sudden fall occurred. It was gaining the whole day till 10:30 pm, but then there was a downtrend from $19,700 to $19,000. Till early morning, the price fell to $18,700, where its lowest cost was $18,644.
Ethereum
Ethereum’s price fell by 8.09% to $1503.73. Like BTC, Ethereum started falling from 10:30 pm, and the price declined from $1600 to $1570. But Ethereum went to $1500 in the morning, and Ethereum was trading at its lowest levels.
Solana’s price also fell by 6.24% to $30.58 today.
Ripple price fell by 5.35% to $0.3163, and its daily trading volume went up by 26.58% to $1,221,962,961.
Binance fell by 7.01% to $260.58, whereas its 24-hour trading volume was up by 37.62% to $1,107,876,985.
Meme Coins
The price of Dogecoin also dropped by 8.11% to $0.05806, and the daily trading volume went up by 35.64% to $426,687,687.
Shiba Inu today was down by 6.1% to $0.00001187.
Final words
Volatility is expected for cryptocurrencies. Sometimes it works in the investor’s favor, and sometimes it does not. The current market is bullish, but experts suggest that the market will recover, seeing a positive direction.
FTX’s downfall is awakening investors on why it matters where you keep your investment. To protect your funds, you must keep your holdings in your wallets and not in exchanges. This will prevent you from losing your significant funds without facing any issues.
Ultimately if there is a lesson investors should learn from this crash is to refrain from investing their entire money on the exchange platform. It’s a reminder only to invest as much as you can bear to lose.
We understand it’s not an easy time for investors, but a long-term outcome is what you should look out for. Nobody knows what happens in one month, three months, and one year. But positive regulation in the crypto industry will potentially make crypto safer for everyone.
