Cryptocurrency Prices Fall; Know Why

The cryptocurrency market fell when the biggest cryptocurrency exchange in the world pulled out of a deal to save a smaller competitor.

After chinese crypto-giant Binance’s non-binding agreement to purchase FTX’s non-U.S. operations on Tuesday, cryptocurrency markets fell today. unit to assist cover a “liquidity crunch” at the competing exchange, in an astonishing bailout that stoked new cryptocurrency investor concerns. The action is the latest last-minute effort to save cryptocurrencies this year as investors withdrew from riskier investments due to rising interest rates.

On hearing of the agreement on Tuesday, major cryptocurrencies initially rose, but those gains were swiftly lost. The price of Bitcoin, the biggest and most well-known digital token in the world, was trading more than 12% down today at $18,204. On the other side, Ether, the second-largest cryptocurrency and coin connected to the Ethereum network, fell more than 16% to $1,312.

According to CoinGecko, the market capitalization of all cryptocurrencies fell below $1 trillion today, falling nearly 11% in the previous day to $952 billion.

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“In response to the actions taken by FTX and Binance, the majority of cryptocurrencies experienced double-digit losses during the past 24 hours. At $17,166, bitcoin hit a yearlong low. BTC has maintained a remarkable performance despite the US Fed raising interest rates by keeping the bar above the $20,000 mark, although it dramatically declined on Tuesday. Ethereum, the second-largest cryptocurrency, also decreased to $1,300, which is its support level. The trend of other prominent cryptocurrencies by market cap is also comparable. For the entirety of the cryptosphere, the upcoming days would be vital “said Edul Patel, co-founder and CEO of Mudrex.

Shiba Inu’s price was down approximately 15% to $0.000010, and Dogecoin was trading almost 24% lower at $0.08 today. Since the values of Binance USD, Avalanche, Solana, Tether, XRP, Terra, Tron, Litecoin, Uniswap, ApeCoin, Polygon, Cardano, Stellar, Chainlink, and Polkadot have been falling over the past 24 hours, other cryptocurrencies’ performance today has also decreased. According to CoinGecko, the utility token of FTX, a major cryptocurrency exchange, fell by more than 75% to about $5.27.

The founders of the two biggest exchanges in the world, Binance and FTX, got into a public argument, which caused a day of swift events for the cryptocurrency market. The Founder of Binance announced that due to rising stability worries at the FTX market, it would sell all of its FTT assets. The crypto market was shaken by Binance’s announcement that it will buy the rival FTX later in the day, which led to selling pressure being led by Binance. According to Shivam Thakral, CEO of BuyUcoin, “Investors are unclear whether the Binance-FTX merger would go through, which led to a bigger sell-off across crypto assets.

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