The crypto space is closer to the record new monthly lows as a fresh sell-off has slashed the prices heavily
On the other hand, heavy withdrawals were recorded in the past 24 hours that indicates a huge drop in the trader’s confidence
In recent times, the crypto markets have been responding widely to external factors like the US rates, Elon Musk’s moves & mentions, and now the Binance and FTX brawl. The markets that ignited the November trade on a bullish note trembled heavily and dropped hard in minutes. The Bitcoin price, which sustained hard above $20,000, slumped below the levels, while the Ethereum price slashed below $1500.
What Went Wrong?
CEO of FTX, Sam Bankman-Fried (SBF), who was considered the king of crypto, has landed in deep trouble as Alameda Research & FTX are presumed to be on the brink of insolvency. A popular exchange, Binance, which had millions of FTT tokens, announced its plans to liquidate all of them. Very soon, the FTT price dropped hard by more than 30% to drop below $16.
On the other hand, the FTX’s Ethereum balance plummeted heavily from more than 300K to as low as 32K in just a couple of days.
Moreover, the outflow of the ETH wallet was recording huge withdrawals of nearly 500 ETH per minute. This created a huge FUD within the crypto space with a speculation of a LUNA-UST-like crash to be fast approaching.
The fear within the market continues as Alameda Research, a leading principal trading firm, founded by SBF, could dump all its tokens soon. Besides the major tokens like USDC, ETH, & BTC, the platform also holds other assets like UNI, MATIC, SHIB, RNDR, ORBS, etc. Out of these, MATIC holdings have already dropped by 80% in a single day.
Meanwhile, the latest activity suggests countless outflows of ETH, USDT, and USDC have been recorded while, 1300 UNI, 612K MATIC, & 48K LINK 4.63M BIT. These huge transfers have created a huge amount of FUD within the markets that may result in steep corrections in the coming times. However, a bearish wave much like that during the LUNA-UST crash may be expected in the coming days, which may wipe out the previous gains.
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