Crypto Crash: Here’s What happened in the last 24 hours

Paigambar Mohan Raj
Source: Coingape

The last 24-hours have been very stressful on the crypto community. Although some volatility was expected due to the mid-term elections and the CPI data announcement due tomorrow, many were not prepared for the rollercoaster ride they were treated to instead. Many were of the opinion that the worst was behind the marker. Little did investors know that the two major exchanges would be involved in adding so much volatility.

Major events in the crypto markets

The current episode started with Binance’s announcement that it would liquidate its FTT holdings. The decision led to FTX selling its Ethereum (ETH) holdings in order to deploy as much capital as possible. This led to a surge in ETH liquidations.

Due to liquidity issues within FTX, Binance moved in with a proposal to acquire its rival exchange. The ensuing FUD and panic caused FTX’s native crypto token, FTT, to plummet by up to 80%. FTX CEO Sam Bankman-Fried’s personal wealth has fallen by 93%, from $16 billion to a low of $991 million.

If that was not enough, within the past 24-hours, Bitcoin (BTC) fell to a yearly low of $17166 thereby removing all gains made in the 2021 bull run. At press time, BTC was trading at $17,904.43, down by 10.2% in the last 24-hours.
Ethereum (ETH) has dropped below $1300, falling by 17.3% in the last 24-hours. Many are worried that the asset will fall below $1000, like it did in June of this year. At press time, ETH was trading at $1,230.85.

Apart from the two largest cryptocurrencies, major altcoins are all in the reds. Solana (SOL) is down 38.6% in the last 24-hours, while XRP has fallen 16.2%, Polygon (MATIC) by 21.8%, and popular memecoin DOGE has fallen by 18.2%, all in the same time frame.

In general, the global crypto market cap has fallen to $926 billion, down by a whopping 9.8% in the last 24-hours.

As clearly visible, the markets have gone through a shock in the last 24-hours. Investors are at the edge of their seats as the CPI data is scheduled to be announced tomorrow. The results could bring in more volatility to the markets.