© Reuters
Investing.com– The hit its lowest level in two years on Thursday as the cryptocurrency market plummeted after major exchange Binance withdrew its bailout offer to peer FTX. which raised doubts about his future and soured sentiment.
The tumbled more than 10%, falling as low as $15,603.3, its lowest level since mid-2020. The token was trading around $16,138.5 as of 21:52 ET (02:52 GMT), and has lost more than 20% of its value this week.
fell nearly 12% to $1,143.81 – its lowest level in four months, with most other altcoins posting double-digit losses. slid 5% to $0.078150, while fell 33% to $14.656.
Cryptocurrency markets faced further losses on Wednesday after Binance CEO Changpeng Zhao said it would acquire FTX, which recently suspended withdrawals due to a liquidity crunch.
cited concerns about the company’s due diligence and reports that the world’s third-largest crypto exchange mishandled customer funds.
US regulators are also reportedly investigating FTX. CEO Sam Bankman-Fried told employees he was exploring all options for the company after the deal with Binance fell through, though the move left FTX with few options other than declaring bankruptcy.
The prospect of FTX bankruptcy has caused widespread losses in crypto markets as the exchange liquidated much of its holdings to meet customer withdrawals. Alameda Capital, the crypto trading desk owned by Bankman-Fried and also believed to have been involved in boosting the value of FTX, was also seen liquidating its holdings on the chain.
Losses in cryptocurrency prices could expose the space to a “cascade of margin calls,” investment bank JPMorgan said, an event that could boost selling even further. The bank also sees bitcoin falling all the way to $13,000.
The FTX crash marks another blow to crypto markets, which were already reeling from a string of high-profile bankruptcies this year. Rising interest rates and a record number of hacks have also undermined investor sentiment towards cryptocurrencies.
FTX’s native token, , lost 90% of its value this week and was trading around $2.
By Ambar Warrick