Many crypto investors predicted that November would see a similar charting as last year, when Bitcoin’s price was at its highest (again).BTC) and the combined crypto market capitalization soared to its All-Time High (ATH).
It has been the opposite. The market has reversed its bullishness to reduce the gains it has made since the beginning of the month. However, it has also fallen precipitously over the past 48 hour.
For the first-time since January 2021 the combined digital currency marketplace capitalization has been achieved slumped below the $900 billion mark, and is currently pegged to $874.74 billion.
Trigger: The Bearish Market Trigger
The implosion and potential acquisition of Binance Exchange, an arch-rival of the FTX Derivatives Exchange, riled the cryptocurrency industry.
In reality, FTX has maintained a strong facade throughout crypto winter. It is widely regarded to be the lender of last resort in its assistance of distressed firms such as BlockFiVoyager Digital and.
As was revealed earlier in the summer by Coindesk, the company had allocated billions of dollars for acquisitions. However, all of these good sentiments were shattered when Coindesk published an Alameda Research report that suggested that FTT valuations could have been inflated. It also revealed how Sam Bankman Fried has been lobbying against US industry players.
Dissociating from such behavior, Binance CEO, Changpeng “CZ” Zhao said he will be selling his FTT bag, a move that fueled massive selloffs and withdrawals from the company. FTX requested Binance to purchase its assets in order to mitigate the impact of the liquidity crunch. Both companies have been conducting due diligence.
Crypto Winter Part 2
The market’s speculations about a new crypto winter have led to more sell-offs. The current outlook is not favorable for the industry. All focus will be placed on preventing a frenzied ripple effect that would lead to the fall of FTX.
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