Bitcoin sinks due to the crisis of the FTX platform

The cryptocurrency crisis deepens.

Thomas Osborne
Thomas Osborne
10 November 2022 Thursday 11:42
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Bitcoin sinks due to the crisis of the FTX platform

The cryptocurrency crisis deepens. The failed rescue by Binance of the FTX.com platform has caused a new general decline in the market for this type of asset, with a massive predominance of sales. After this new fiasco, bitcoin is trading around $17,000 this Thursday, 13% less than a week ago and 70% less than a year ago, when it touched $70,000 for the first time.

Thus, the main cryptocurrency in the market falls this Thursday to levels never seen for two years. The crash is mainly attributed to the loss of investor confidence in this type of asset as Binance has ruled out rescuing FTX, one of the main cryptocurrency brokerage platforms that is experiencing serious liquidity problems.

The announcement has also affected the price of other assets of this type. This is the case of the second best-known cryptocurrency, ethereum, which lost 16% compared to a week ago when trading at $1,300, while dogecoin dropped 30% and solana 40% in the same period.

Last Tuesday, the largest 'crypto' trading platform, Binance, announced its intention to come to the aid of its rival FTX due to the liquidity problems of this platform, which is on the verge of collapse. However, its CEO, Changpeng Zhao, already warned then that the operation still had to pass the preliminary investigation process and that it could withdraw from the agreement at any time, as it has been.

"As a result of recent news about mishandling of customer funds and alleged investigations by US agencies, we have decided not to proceed with the potential purchase of FTX.com," a company statement said. The collapse of the platform founded by Sam Bankman-Fried has once again unleashed the storm in the 'crypto' world for fear that a new wave of collapses is coming.