Bitcoin and the other popular asset have dropped significantly signalling the enhanced bearish activity in the past couple of hours
The crypto investors fear speculation of FTX’s insolvency as the FTT price also slumped hard to mark new lows
The crypto markets have been extremely bearish after undergoing a minor bounce in recent times. The brawl between the Binance CEO, Changepang Zhao(CZ) & the FTX CEO, San Bankman-Fried(SBF) has led the market to lose more than 10%-12% of the market cap in the past couple of days.
Presently, the FTT price has dropped by more than 73% to mark new lows at $4.36. Meanwhile, Solana’s price is also under heavy pressure as Bitcoin & Ethereum prices slump below $19,000 & $1400, respectively. However, the BinanceCoin (BNB) price continues to maintain its strength, registering a minimal loss of just 0.4% in the past 24 hours.
What caused a flip in market sentiments?
Well, there are larger concerns over FTX’s liquidity and its balance sheet, as they have turned down sharply ever since Binance announced liquidating all of their FTT tokens. As per some reports, the FTX balance sheet is down by nearly $6 billion, and the platform is trying hard to raise some funds to fill the gap.
The crypto markets have encountered a similar situation in the past couple of months while the Terra ecosystem crashed causing a 50% drop within the markets. Meanwhile, the assets have not completely recovered from the losses incurred then, and a fresh bearish market may compel the assets to find new lows in the coming days.
However, some analysts believe that the markets may not drop heavily as they did during the LUNA-UST crash as the reasons are a little diverse. Meanwhile, for the investors who were slowly gaining confidence back, the fresh sell-off may eventually enhance their distrust for a prolonged period ahead. Moreover, the regulatory scare may act as icing on the cake. Therefore, a bearish close for the year appears to be imminent.
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