Further losses come in step with confusion over the future of FTX under Binance, while CPI data looms on the horizon.
Bitcoin (BTC) fell below $17,000 on Nov. 9 as rumors spread over crypto exchange Binance exiting a deal to buy embattled competitor FTX.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance CEO: “Do not trade FTT”
The latest dive hit an already shaky market, which had reacted badly to news that FTX had asked Binance for financial assistance.
“I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag,” it read.
While he said that he “would not comment” on the FTX takeover deal, an unnamed source subsequently told industry news outlet CoinDesk that Binance had doubts over going through with it.
This in turn pressured crypto market sentiment, leading to a drop which saw largescale losses across Bitcoin and altcoins.
Liquidations told the story, with a total of $860 million worth of long and short positions wiped out in the 24 hours to the time of writing, according to monitoring resource Coinglass.
Crypto liquidations chart. Source: Coinglass
FTT/USD traded at just $3.60 on the day, down from $22 just two days previously, leading to comparisons with the Terra LUNA debacle.
“Honestly, it feels weird, but things will be better from here on,” Michaël van de Poppe, founder and CEO of trading platform Eight, predicted.
“Errors need to be made to improve a system and that’s what happened with Mt. Gox, $LUNA, and now FTX. It might feel like we’re on the edge of collapsing crypto entirely, but Bitcoin and crypto are here to stay.”FTT/USD 1-hour candle chart (FTX). Source: TradingView
CPI day creeps up on crypto
With the crypto community distracted with internal problems, few paid attention to the Nov. 10 United States Consumer Price Index (CPI) print.
A source of volatility in itself, the event is normally given full attention, but even the U.S. midterm elections took a back seat this week.
“I’m just waiting to see how CPI & how the market reacts Thursday,” trader Josh Rager summarized in part of a tweet Nov. 8.
The U.S. dollar index abandoned modest gains on the day, heading below 110, while both the S&P 500 and Nasdaq Composite Index tread water.
“It’s clear that Bitcoin is yet again priced to buy for long-term spot but I’m happy to wait to see how the market reacts with how the FED handles things.”U.S. dollar index 1-hour candle chart. Source: TradingView
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