The crypto markets have once again taken a turn for the worse. Major projects are registering double-digit falls, amid the panic and uncertainty that has grasped investors. Bitcoin (BTC), the original crypto, has fallen by 6.5% in the last 24 hours. BTC even fell below the $18k mark, reaching a yearly low of $17166.
Nonetheless, the token has climbed back across the $18k level. Ethereum (ETH), the second largest crypto by market cap, has fallen by a whopping 10.6%. Basically, the markets have lost all the gains made since November 2020. The incredible bull run of 2021, is all but void.
Now, the first week of November had some eventful dates that brought out fresh volatility. The mid-term election is one of them. The other event that investors have their eyes on is the October inflation data which is due tomorrow, November 9th. Inflation is expected to come in at 7.9%, 0.3% lower than that in September. Many investors, crypto, and traditional hope that a lower inflation rate will urge the Federal Reserve to ease the interest rate hike.
However, Fed chair, Jerome Powell, has stated that the body will do everything in its power to curb inflation. Therefore, a lower interest rate hike is probably unlikely, at least for now.
How has the Binance-FTX situation affected the crypto markets?
The Binance-FTX situation was one that nobody expected. Given the aftermath of the situation, very few were prepared for what was to come next. FTX CEO, Sam Bankman-Fried’s (SBF) net worth has dropped from $16 billion to $991 million as a result of FTT’s fall.
The popular exchange will now be acquired by Binance, whose very CEO had accused SBF of lobbying against other industry players. Fate sure seems to love irony, as FTX was on a shopping spree over the summer, acquiring firms that had collapsed during the crash, now FTX is in the shoes of those very firms.
Nonetheless, the situation has caused a lot of panic among investors and users. If the elections and inflation data release were not enough, the war of the exchanges added additional fuel to the fire.
At press time, the global crypto market cap stood at $950 billion, down by 6.8% in the last 24 hours.