Bitcoin sinks to new yearly low at $16.8K as FTX insolvency fears turn into contagion

Market Analysis

Crypto markets crumbled for a second day as the fallout from FTX’s liquidity troubles continued to negatively impact investor sentiment.

Bitcoin (BTC) price fell to a new yearly low at $16,800 as anonymous unconfirmed sources suggested that after a closer review of FTX’s books, Binance could back out of its agreement to acquire the beleaguered exchange.

Crypto market performance. Source: Coin360

Another factor having a potential impact on the market is a wave of successive liquidations in Solana’s decentralized finance markets. Earlier in the day, cryptocurrency exchange emailed its users to inform them that all Solana-based USD Coin (USDC) deposits had been suspended.

A notice on the website also said:

“Please be informed that we have suspended deposits and withdrawals of the USDC and USDCT on the Solana Blockchain in the App and Exchange.”

At the time of writing, the price of Solana’s native SOL (SOL) coin is down 34%, trading at $16.10. FTX’s native FTX Token (FTT) is also 32% down on the day and trades for $3.78.

Data from Coinglass shows $832 million in total liquidations over the past 24 hours, and many traders expect the figure to increase.

Total daily crypto market liquidations. Source: Coinglass

Related: Galaxy Digital discloses $77M exposure to FTX, $48M likely locked in withdrawals

For further backstory on what is happening with FTX, click here to watch Cointelegraph Markets’ explainer on the situation. 

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

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