Why Bitcoin and Ethereum Prices Are Plunging After Binance Announced It Would Acquire FTX| NextAdvisor with TIME
, 2022-11-11 09:45:00,
The crypto market is having a no good, very bad week.
This week’s crash brings a sudden reversal after weeks of relative stability for bitcoin and ethereum prices. Both tokens are now down more than 20% over the last week. The crash was first driven by fresh investor skepticism and souring sentiment on the heels of Binance’s announcement that it would buy out rival FTX on Wednesday, after concerns over FTX’s liquidity were raised. But Binance pulled out of the deal, which ultimately led FTX to where it is now: filing for bankruptcy.
In light of all the news, bitcoin’s price plummeted, falling below $16,000 for the first time in two years late Wednesday afternoon. Ethereum saw a similar downturn, falling below $1,200 on Wednesday for the first time since crypto’s crash over the summer. The two tokens have significantly recovered, as of Friday morning, with bitcoin nearing $17,000 again and ether back above $1,200.
While bitcoin and ethereum prices have remained low compared to last year, both tokens had been relatively steady, even in the face of Fed rate increases, tumbling foreign currencies, the continued war in Ukraine and stock market crashes.
“For a long time, bitcoin has aligned itself with broader risk appetite…
To read the original article from news.google.com Click here