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Binance-FTX Chaos Causes a $70 Billion Loss in Cryptocurrency Markets

Bitcoin’s fortunes changed for the worst after it had been trading over the $20,000 threshold for many days. Even alternative cryptocurrencies like FTT, which has dropped by double digits in value, are doing poorly. The only non-eco-friendly element is chainlink.

BTC Falls Below $20,000

The principal cryptocurrency had a good week last week, rising beyond $20,000 and reaching as high as $21,500 over the weekend, a multi-month high. Bitcoin’s value didn’t drop below $20,000 despite a rate rise by the US Federal Reserve.

But it had occurred hours ago. Initially trading at roughly $21,000, BTC dropped by over $1,000 in minutes as bears gained market control. Bitcoin’s value fell below $19,400 earlier today, a new low for the cryptocurrency.

Since then, the asset has gained a few hundred dollars but is still much below $20,000. Due to the increased volatility, over-leveraged traders suffered losses of about $400 million per day in total liquidations.

Is FTT the Reason Behind the Fall

Because of recent news about the SBF-led exchange, Binance CEO Changpeng Zhao decided to sell off all of the company’s FTT tokens yesterday. The FTX token’s value fluctuated immediately as a consequence.

While SBF has responded and assured everyone that FTX is doing OK, yesterday, it dipped to $22. But things are far worse now, with the asset down another 20% to well below $20.

The market seems to have been affected, with red being the dominant colour. There was a 5% drop in a day, and Ethereum is now trading at less than $1,500. A fall of up to 5% has been seen in the prices of cryptocurrencies, including Cardano, MATIC, Polkadot, Tron, and OKB.

Ripple, Dogecoin, Solana, Shiba Inu, and Avalanche are just some of the cryptocurrencies that have recently suffered losses. As a result, it’s not surprising that the total market value of all cryptocurrencies has dropped below $1 trillion, losing $70 billion in only one day.