What was the reason and how could it affect the entire crypto market?
FTX’s token plunges 80% on liquidity concerns, wiping out over $2 billion in value
I have to say that I am frightened that FTX's token with its fall can affect the market so strongly
It all started with
FTT, the token native to FTX, lost most of its value on Tuesday, after rival Binance, the world's largest cryptocurrency firm, announced plans to acquire the company.
Binance is now backing out of the acquisition
Here you can read it all from CNBC news
Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse
image search CNBC
What are your thoughts on this and why is the steem value affected by it?
xpilar.witness
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Dear @xpilar
I woke up in the middle of the night and experienced quite a shock to see price of Bitcoin close to $15k level. I must admit, that going back to sleep was not easy at all.
My guess is that current price drop has been caused by mid-term elections in US. That's from macro point of view. Additionally it seem that Binance buying FTX exchange caused wave of panic sale.
It's hard to find any more crutial reasons than those two. Wouldn't you agree?
It's also worth to remember, that today (on 10th) new inflation reading in US will be announced. This may also have quite a strong impact on bitcoin short-term price movement. Especially since level of inflaiton will greatly determine upcoming steps taken by FED.
So much is happening. How are you doing during those challenging times? Hopefully you don't have your assets on FTX?
I also wonder if at the end of the day Binance will buy FTX or will they change their mind ....
Cheers, Piotr
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Fortunately, I don't have funds in FTX
It must be a big shock to those who have invested in it
Yes, it must have happened when Binance said they were going to buy up FTX
and when prices fall, others will also sell in panic
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In a strange and scary way, it reminds of of about 20 years ago, when it was the Internet/Dot-com collapse... something very similar. Some large company with public stock funding and a sketchy business plan would suddenly be in trouble... but it would also cause really good companies — Cisco Systems, Amazon, eBay — to lose 50% of their value, even though they had done nothing wrong.
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It is hard to understand that the whole crypto market crashed because of FTX
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Unfortunately, the events surrounding the FTX exchange dealt a severe blow to the entire crypto industry, from which it will be very difficult to recover. It is a pity that all market participants suffered, even those who work in good faith on good and promising projects.
In my opinion, it will be difficult for Bitcoin to rise above $20,000 now. But any crisis leads to market clearing and further growth. Perhaps now is the time to make new investments.
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It's a buyer's market now, or will we see another price crash soon
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We support quality posts anywhere and any tags.
Curated by : @petface
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Thank you @petface ;)
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The entire crypto industry is experiencing a crisis right now. This fever is just a special case. I think there will be other shocks.
The development curve has the form of a sinusoid (the projection of a spiral onto a plane). And now the development curve is on the lower sole. But the law of development says that this condition happens before the next growth.
It is possible that this is part of the speculators' game to buy cryptocurrencies at a low price before the price rises. Everything can be
Unfortunately, the price of the crypt is linked to the Fed's interest rate.
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I think the crypto market will be unstable for a long time now
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Maybe so. The general instability is observed not only in the crypto markets and this also affects.
But market speculators may have their own plans.
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The comment I'm looking for :)'
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Perhaps it is not kosher to complain of the lack of regulation in a crypto space--yet here I am being the stick in the mud.
The tragedy of the entire crypto project is that decentralization and lack of regulation lead to higher volatility and higher incidences of fraud.
Any economist will concede that recent crashes have involved a high degree of financial mismanagement. People were investing in one coin, borrowing against it and investing in another coin, and then sometimes even borrowing against that to invest in some crazy scheme promising 1000s% interest. Honestly, what did anyone expect?
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Yes, it is terrible what happened and affected the entire crypto market
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I do not know anything about a crypto.
But, I have a question.
Why the price dropped if Binance bought FTX?
What is wrong with that?
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I also don't know why the whole market is affected by this
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We are on the verge of an interesting time, perhaps what everything that the crypto world has relied on should change its foothold, bitcoin is too vulnerable, as recent events show. Reading Changpeng Zhao's tweets, one can assume that bitcoin's collapse has just begun and it will tend to zero, as opposed to what many expect it to get six zeros, one zero, more real, what after the decimal point, lol, only, after it, a rebound to millions is possible. But, these are just my thoughts, which do not pretend to be an indication of action, are not financial advice :)
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I agree with you that BTC is vulnerable, but hope that steem can increase without being affected by what is happening
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It can be assumed that in the conditions of the energy crisis, with an increase in electricity tariffs, coins that do not rely on energy-intensive mining farms will prosper.
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Upvoted! Thank you for supporting witness @jswit.
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Thank you, friend!
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Oh my!
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