The Crypto Market Has Diminished $100 Billion As A Result Of The FTX Drama

According to statistics acquired by Finbold from CoinMarketCap on November 9, the fallout from the FTX crisis has inflicted a severe blow on the crypto market capitalization, bleeding it by more than $100 billion in a single day.

Specifically, the global crypto market has decreased from $983 billion to $880 billion in the preceding 24 hours, a loss of $103 billion or more than 10%, and a loss of $110 billion for the week.

Notably, the most substantial drop occurred just hours after it was revealed that FTX was on the verge of collapsing, with the market dropping from its peak of $1.027 trillion to as low as $827 billion.

The crisis has begun.

Chainlink (LINK) gains more than 6% in 24 hours in a bear market; here’s why. FTT falls 80%, erasing $2.5 billion from its market capitalization.

As a reminder, the problem occurred when it was disclosed that Sam Bankman-trading Fried’s firm Alameda Research’s balance sheet was mostly of the FTX Token (FTT), revealing a strong relationship between the two elements of his economic empire.

In reaction to this disclosure, Binance liquidated $500 million in FTT on November 6, placing FTX in a bit of a liquidity bind and sparking some Twitter sparring between the two, which OKX CEO warned might have disastrous effects.

As a result, the FTX token dropped up to 80% in a single day, wiping out about $2.5 billion from its market worth, as Finbold previously reported.

When will the crisis be over?

However, in an unexpected turn of events, Binance reached out to its competitor on November 8 by establishing a non-binding agreement to purchase FTX in order to aid it in recovering and preventing the crisis from spreading across the sector after the crypto exchange requested help.

However, the damage appears to have already been done, as the ramifications of the crisis have spread to all other assets, including Bitcoin (BTC), which has fallen more than 9% on the day and is now trading at $17,917.

It needs to be seen how much Binance’s recent initiatives will help relieve these implications while market uncertainty persists.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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