Why is Bitcoin Price Down Today? What is Leading to a Crypto Crash?

Why is Bitcoin Price Down Today? What is Leading to a Crypto Crash?

The post Why is Bitcoin Price Down Today? What is Leading to a Crypto Crash? appeared first on Coinpedia Fintech News

The crypto markets have been extremely bearish after undergoing a minor bounce in recent times. The brawl between the Binance CEO, changpeng zhao changpeng zhao founder and ceo at Binance Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.   He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets. EntrepreneurInvestorChief Executive Officer Followers : 0 View profile (CZ) & the FTX CEO, Sam Bankman-Fried(SBF) has led the market to lose more than 10%-12% of the market cap in the past couple of days. 

Presently, the FTT price has dropped by more than 73% to mark new lows at $4.36. Meanwhile, Solana’s price is also under heavy pressure as Bitcoin & Ethereum prices slump below $19,000 & $1400, respectively. However, the BinanceCoin (BNB) price continues to maintain its strength, registering a minimal loss of just 0.4% in the past 24 hours. 

What caused a flip in market sentiments?

Well, there are larger concerns over FTX’s liquidity and its balance sheet, as they have turned down sharply ever since Binance announced liquidating all of their FTT tokens. As per some reports, the FTX balance sheet is down by nearly $6 billion, and the platform is trying hard to raise some funds to fill the gap. 

The crypto markets have encountered a similar situation in the past couple of months while the Terra ecosystem crashed causing a 50% drop within the markets. Meanwhile, the assets have not completely recovered from the losses incurred then, and a fresh bearish market may compel the assets to find new lows in the coming days. 

However, some analysts believe that the markets may not drop heavily as they did during the LUNA-UST crash as the reasons are a little diverse. Meanwhile, for the investors who were slowly gaining confidence back, the fresh sell-off may eventually enhance their distrust for a prolonged period ahead. Moreover, the regulatory scare may act as icing on the cake. Therefore, a bearish close for the year appears to be imminent.