Bitcoin (BTC) fell to $15,625 on Wednesday, following crypto exchange Binance’s refusal to bail out competitor FTX through its acquisition, the most popular cryptocurrency falling below $16,000 for the first time in two years . informed CoinDesk.
Binance conducted due diligence on FTX’s financial statements, which uncovered a number of issues, and subsequently announced that the acquisition deal had been called off, citing misappropriation of funds and alleged SEC investigations.
The SEC’s refusal to do business led to the collapse of the cryptocurrency market. Bitcoin price fell 14% on the day, its biggest daily drop since mid-June. A year ago, it reached its all-time high of $68,982.20. At the same time, Ethereum fell 14% to $1128.87. The total cryptocurrency market capitalization is now around $914 billion, down 10.6% from the previous day.
Crypto traders fear that problems with FTX or its founder Sam Bankman-Fried’s trading firm Alameda Research could lead to forced sales of not only FTT, the FTX platform’s native exchange token, but also other cryptocurrencies, from Bitcoin to Ethereum and SOL, could affect .
It will also hit FTX investors including SoftBank, BlackRock, Tiger Global, Thoma Bravo, Sequoia, and Paradigm and hurt user confidence in the cryptocurrency.