Why Bitcoin, ether, dogecoin, Solana, other crypto prices are crashing today

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Cryp­tocur­ren­cy prices today crashed after cryp­to giant Binance signed a non­bind­ing agree­ment on Tues­day to buy FTX’s non‑U.S. unit to help cov­er a ‘liq­uid­i­ty crunch’ at the rival exchange, in a stun­ning bailout that raised fresh con­cerns among investors about cryp­tocur­ren­cies. The move is the lat­est emer­gency res­cue in the world of cryp­tocur­ren­cies this year, as investors pulled out from riski­er assets amid ris­ing inter­est rates.

Major cryp­tocur­ren­cies ini­tial­ly ral­lied on the news of the deal on Tues­day, but those gains were quick­ly erased. The world’s largest and most pop­u­lar dig­i­tal token Bit­coin’s price today was trad­ing more than 12% low­er at $18,204. On the oth­er hand, Ether, the coin linked to the ethereum blockchain and the sec­ond largest cryp­tocur­ren­cy, also tum­bled by more than 16% to $1,312.

The glob­al cryp­to mar­ket cap today slipped below the $1 tril­lion mark, as it was almost down over 11% in the last 24 hours to $952 bil­lion, as per CoinGecko.

“Most cryp­tocur­ren­cies record­ed dou­ble-dig­it loss­es in the past 24 hours, react­ing to the moves made by FTX and Binance. Bit­coin reached a year­ly low at $17,166. Despite the US Fed’s inter­est rate increase, BTC has main­tained an impres­sive per­for­mance by keep­ing the bar above the $20,000 lev­el, but it dropped sig­nif­i­cant­ly on Tues­day. The sec­ond largest cryp­tocur­ren­cy, Ethereum, also fell to its sup­port lev­el at $1,300. Oth­er top cryp­tocur­ren­cies by mar­ket cap are also fol­low­ing a sim­i­lar tra­jec­to­ry. The com­ing days would be cru­cial for the entire cryp­to spec­trum,” said Edul Patel, CEO and Co-founder, Mudrex.

Mean­while, doge­coin price today was trad­ing near­ly 24% low­er at $0.08 where­as Shi­ba Inu was also down about 15% to $0.000010. Oth­er cryp­to prices’ today per­for­mance also declined as Binance USD, Avalanche, Solana, Teth­er, XRP, Ter­ra, Tron, Lite­coin, Uniswap, ApeCoin, Poly­gon, Car­dano, Stel­lar, Chain­link, Polka­dot prices were trad­ing with cuts over the last 24 hours. FTT, the util­i­ty token of cryp­to exchange giant FTX, col­lapsed by more than 75% to around $5.27, accord­ing to CoinGecko.

“It was a day of rapid devel­op­ments for the cryp­to mar­ket as the founders of the world’s biggest exchanges Binance and FTX entered into a pub­lic spat. Binance Founder made a state­ment that it would liq­ui­date its entire FTT hold­ings due to grow­ing sta­bil­i­ty con­cerns at the FTX exchange. Lat­er in the day, Binance announced that it would acquire the rival FTX which rat­tled the cryp­to mar­ket and result­ed in Binance-led sell­ing pres­sure. The investors are unsure if the Binance-FTX deal will go through which led to a larg­er sell-off across cryp­to assets,” said Shiv­am Thakral, CEO of BuyUcoin.

(With inputs from agencies)

The views and rec­om­men­da­tions made above are those of indi­vid­ual ana­lysts or broking com­pa­nies, and not of Mint.

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