Bitcoin has made remarkable movements today, reaching highs of $20,673 before plummeting to a low point of $17,229. This is lower than June and is the lowest level in roughly two years. The dip in Bitcoin prices coincides with Binance’s announcement that it is prepared to acquire FTX’s non-US operations since the latter exchange is experiencing severe liquidity concerns.
While Bitcoin hit new lows, the price rose somewhat, reclaiming some of the lost value; nevertheless, at the time of writing, it has yet to reach the price level it began the day at. Some may be concerned that Bitcoin has fallen to new lows after believing that the June 18 low was the bottom of this cycle. Given the macroeconomic realities, it’s no surprise that crypto exchanges are experiencing problems and losing trust.
While Bitcoin investors may be concerned today, the decrease in value is insignificant compared to the loss faced by the FTX Token (FTT).
FTT began the day at $22.21 and is currently worth just $4.65 at the time of writing, although it hit frightening lows of $2.73.
Its value has dropped by 79% today as of the time of writing.
The S&P 500 doesn’t seem to be affected by what’s happening in the crypto market; it’s down from the start, but not by much.
It’ll be fascinating to see whether Binance ends up assisting FTX and restoring faith in FTT to help investors of that cryptocurrency regain some of their lost value.
Today’s lesson demonstrates why you should use care while investing in cryptocurrency. If you decide to purchase cryptocurrency, don’t spend more than you’re prepared to lose. If you had $10,000 in FTT yesterday, it would today be worth $2,100 – so be careful if you invest in cryptos since they are very hazardous.