Bitcoin falls to a two-year low

The last time BTC traded at this level was in late 2020

10.11.2022 - 09:00

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What’s new? On November 10, the bitcoin rate fell to $15 780, updating its one-year low. The first cryptocurrency was previously traded at this level at the end of 2020. The fall in BTC quotes is due to the collapse of the FTX crypto exchange and the collapse of its native token FTT. The platform is facing bankruptcy as the hole in its budget reached $8 billion.

Binance’s dat

Bitcoin situation. According to Google Trends, the figure of the dynamics of the popularity of search queries about bitcoin in the last 24 hours has increased to an all-time high from the mark of 32 scores. The year low for the first cryptocurrency was set against the backdrop of news about the rejection of the Binance exchange to take over FTX following due diligence.

Source: Google Trends

Notably, exactly one year ago, on November 10, 2021, bitcoin set its all-time high (ATH) at $69 000. At the moment BTC is trading 75,97% below ATH. As of 08:30 UTC, the asset’s rate is $16 580 and has a market capitalization of $320,4 billion.

What is going on with FTX? On November 5, Binance began liquidating its positions in FTT. The reason was the reporting of the trading company Alameda Research — it turned out that the majority of its capital is FTT (the owner of FTX and Alameda is entrepreneur Sam Bankman-Fried). As a result of liquidations, massive outflows of deposits from the platform, and information about a possible takeover of FTX, the price of the asset plummeted by more than 70% and the exchange faced a shortage of funds. FTX was previously one of the largest centralized exchanges, the trading volume was $5,87 billion as of November 2.

Earlier, analyst Nicholas Merten called indicators pointing to the continuation of the bear market. The expert explained that the tight monetary policy of the US Federal Reserve System (Fed) is one of the reasons why we should not wait for a bullish period. Merten noted that macroeconomic factors are likely to lead to lower prices for digital assets.

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