Yesterday, Bitcoin and the majority of alternatives continued to fall, setting new yearly lows.
The market as a whole, and Bitcoin in particular, have seen better times as the asset has fallen to multi-year lows around $15,500.
The alternative coins also suffered greatly, although some, like SOL and FTT, had remarkable drops.
Bitcoin Sank to a 2-Year Low
In the past few days, a lot has transpired in the world of cryptocurrencies, which has, fairly predictably, had an impact on the pricing. For instance, over the weekend, the price of Bitcoin soared to a multi-week high of almost $21,500.
Due to various anomalies with the balance sheets of FTX and Alameda, Binance made the decision to lay out plans to sell up its entire FTT stockpile as everything appeared to be going according to plan.
Consequently, the domino started to fall. Bitcoin nearly instantly fell to below $20,000, but that was only the beginning. The asset dropped to $17,000 before crashing to $15,500 yesterday on Bitstamp. Since the end of November 2020, this became the item’s new lowest price.
Despite making almost $1,000 in gains since then, BTC is still 6.5% lower than where it was earlier in the day. With a $320 billion market cap and a 38.4% domination over the alternatives, it has reversed course.
Altcoins Hardly Bleed Out
Similar, if not greater, pain than bitcoin was felt by other currency during the past few days.
Within this time, the price of Ethereum dropped from over $1,600 to roughly $1,100. The second-largest cryptocurrency is still down by double digits for the week even though it is now trading above $1,200.
Another significant loser from the current shambles is Binance Coin. Following news that Binance will buy FTX, BNB soared to $400 before falling immediately after. BNB was further driven south to its current level by Binance’s statement that they would not buy the SBF-led exchange.
Solana is currently trading at $14, down a “modest” 17% from yesterday when it reached a low of around $9. Given the impending unlocking of SOL tokens, the asset may experience even greater volatility today.
The native cryptocurrency of FTX is now trading for less than $3, but yesterday it fell to less than $2.
Since the conflict between Binance and FTX began over the weekend, the crypto market cap has lost around $200 billion overall.
Can bitcoin go back to $10 K?
Veteran investor Mark Mobius warned CNBC on Thursday that the price of bitcoin may drop to $10,000, a drop of more than 40% from present levels. Although Mobius anticipates bitcoin to remain at its current level of $17,000, he added the drop to $10,000 may occur in 2023.
Why did crypto crash 2022?
After the demise of significant exchange FTX, pressure has been put on cryptocurrencies. Beginning in 2022, a second “crypto winter” saw the prices of digital currencies plummet dramatically and high-profile businesses collapse across the board.