Bitcoin falls to its lowest level in over a year
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Bitcoin falls to its lowest level in over a year as Binance takes over FTX

The cryptocurrency market collapsed on Tuesday after it was announced that the world’s largest cryptocurrency exchange, Binance, will acquire one of its main competitors FTX, which is facing a liquidity crisis. According to Coin Desk, Bitcoin hit a 365-day low today – at the moment its price fell to $17,484, but later the price partially recovered. Ethereum collapsed even more and other cryptocurrencies fell as well.

    Image source: Kanchanara/unsplash.com

Image source: Kanchanara/unsplash.com

At the time of publication, bitcoin was trading at $18,300, meaning it was down more than 12% over the past day. Ethereum dropped even more – down 18% to $1308. However, FTT, the native token of the FTX trading platform, fell the most. It has lost over 77% of its value in the past few hours. We wrote more about the problems and absorption of FTX here, so let’s just remember that the company was accused of fraud with its FTT token, after which users started mass selling it and withdrawing funds from the site.

We add that Coinbase shares are down 11%, while Robinhood, in which FTX’s founder owns a 7.6% stake, is down 14.5%. Cryptocurrency banks like Silvergate and Signature, and bitcoin miners like Hut 8 and Riot Blockchain have seen double-digit percentage losses.

Such a major collapse in cryptocurrencies happened after Bankman-Fried announced on Twitter that FTX has agreed to sell its assets to Binance for an undisclosed amount. But even before that, the cryptocurrency market was feverish on Tuesday morning due to growing investor concerns about FTX’s solvency. FTX has had to suspend withdrawals from its platform after massive attempts by investors to withdraw their funds.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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