Bitcoin price risks $17,000 as Binance may reject FTX buyout

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Bitcoin (BTC) fell below $17,000 on Nov. 9 as rumors spread of crypto exchange Binance exiting a deal to buy embattled competitor FTX.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Binance CEO: “Don’t trade in FTT”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $16,936 on Bitstamp before bouncing back.

The latest dive hit an already fragile market, which had reacted badly to the news that FTX had requested financial assistance from Binance.

In a note to staff share on Twitter, Binance CEO Changpeng Zhao (known as “CZ” in the crypto industry) told them to refrain from trading FTX’s internal FTT (FTT) token.

“I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag,” it reads.

Although he said he would “not comment” on the FTX takeover deal, an unnamed source later told news outlet CoinDesk that Binance had doubts about its execution.

This in turn put pressure on crypto market sentiment, leading to a decline that led to large-scale losses on Bitcoin and altcoins.

The liquidations told the story, with a total of $860 million in long and short positions wiped out in the 24 hours before writing, according to watchdog resource Coinglass.

Crypto liquidation chart. Source: Coinglass

FTT/USD was trading at just $3.60 on the day, down from $22 just two days prior, leading to comparisons to the Terra LUNA debacle.

“Honestly, it feels weird, but things will be better from now on,” Michaël van de Poppe, founder and CEO of trading platform Eight, predicted.

“Mistakes have to be made to improve a system and that’s what happened with Mt. Gox, $LUNA and now FTX. It might look like we are on the verge of a complete crypto crash, but Bitcoin and crypto are here to stay.

FTT/USD 1 hour candle chart (FTX). Source: Trading View

CPI Day Slips On Crypto

With the crypto community distracted by internal issues, few paid attention to the November 10 US Consumer Price Index (CPI) printout.

Related: Funding Rates Hit 6-Month High Ahead of CPI — 5 Things to Know About Bitcoin This Week

A source of volatility in itself, the event normally receives all the attention, but even the US midterm elections have taken a back seat this week.

“Just waiting to see how the CPI and how the market responds on Thursday,” trader Josh Rager summed up in part of a November 8 tweet.

The US dollar index gave up modest gains during the day, slipping below the 110 mark, while the S&P 500 and Nasdaq Composite index tread water.

“It’s clear that Bitcoin is once again at a long-term buy price, but I’m happy to wait and see how the market reacts to how the FED handles things.”

US dollar index 1 hour candle chart. Source: Trading View

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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