Over the past 24 hours, the cryptocurrency market experienced some turmoil triggered by FTX’s “liquidity crunch.” Amid this backdrop, Bitcoin fell in price to late November 2020 levels, and the crypto market cap lost over 10% overnight.
On November 8, BTC’s average value dipped momentarily below $17,500, as reported by CoinGecko. This is the lowest level since late November 2020. The absolute minimum of $17,120 was recorded on Bitstamp.
According to Coinglass, total liquidations exceeded $846 million during the day. Nearly 60% were positions in BTC and ETH. Moreover, the crypto market cap fell by more than 11% in a 24-hour period. However, according to CoinGecko, as of 14:30 (GMT+2) on November 9, the total market cap is $916 billion, and the daily decline decreased to 10.6%.
The uncertain situation around FTX triggered the main pressure on BTC and, consequently, the entire market. Earlier, reports emerged about liquidity problems with FTT’s native token, provoking its massive sell-off, a 70% drop in value, and investors fleeing from FTX. CryptoQuant reported that almost 20,000 BTC were withdrawn from FTX accounts on November 8.
What worsened the situation is that the platform suspended client withdrawals “for technical reasons.” Amid the Terraform Labs events in May, investor confidence was severely undermined. Therefore, this situation didn’t change dramatically after the news of a possible deal with Binance. And then BTC went down to the minimum levels after a slight increase.
At the time of writing, according to CoinGecko, BTC’s average value is $17,700 and shows further downward trends. It may be noted that its trading volume decreased by almost 80% in a day, which also puts pressure on the asset’s price amid oversupply.
