There is a new crisis in the cryptocurrency world. After the cryptocurrency exchange FTX had a liquidity problem, the price of Bitcoin fell as it fell. The most popular cryptocurrency has slumped to its lowest level in almost two years.
Bitcoin at its lowest level of the year
Confidence in the cryptocurrency market has dwindled after FTX ran into problems with liquidity and sought help from Binance. Bitcoin, which was above $ 20,500 on Tuesday, has lost 15 percent in the last 24 hours. Bitcoin price dropped to $16,720, its lowest level of the year.
Investment experts expect a drop in popular cryptocurrencies such as Ethereum, Solana and Avalanche, especially Bitcoin. As the bear period continues to dominate the market, analyst Jim Wyckoff predicted that Bitcoin could drop to the $12,000 resistance.
Recent events in the crypto market are thought to be related to the decline in the value of FTX’s own token, FTT, and the company’s liquidity problem. After the crisis with FTX users withdrawing their investments, FTT fell to $3.46.
Binance, the rival company of FTX, announced that it has agreed to acquire FTX after the liquidity crisis. Following the acquisition deal, FTT gained more than 22 percent. Binance’s native token, BNB, rose 19.58 percent to $287.
Crypto analyst Michael van de Poppe said, “Can Bitcoin drop to $10,000? This is possible, or $12-14k could drop as well. It all depends on how it will develop. I wouldn’t dare short bitcoin. Rather, it should be invested,” he said.