Bitcoin has made dramatic moves today, it reached highs of $20,673 earlier in the day before crashing to a new low of $17,229. This is lower than what was recorded in June and marks the lowest point in about two years. The drop in the price of Bitcoin comes as Binance says it’s willing to buy FTX’s non-U.S. operations, as the latter exchange is facing serious liquidity issues.
While Bitcoin did touch new lows, the price sprung back up somewhat, regaining some of the lost value, however, at the time of writing, it has still not reached the price level it started the day at. The fact that Bitcoin has broken down to new lows could be concerning to some who expected the June 18 low to be the bottom for this cycle. Given the macroeconomic conditions, it’s not surprising to see crypto exchanges running into issues and shaking confidence.
While Bitcoin holders may be a bit nervous today, the loss in value is miniscule compared to the loss experienced by the FTX Token (FTT). FTT opened the day at $22.21 and is now worth just $4.65 at the time of writing, it did reach scary lows of just $2.73. At the time of writing, its value has declined by 79% today alone.
The S&P 500 doesn’t really seem phased by what’s going on in cryptoland, it’s down from the open but not by too much. It’ll certainly be interesting to see whether Binance does end up helping FTX and restoring confidence in FTT to help holders of that crypto restore some of their lost value.
Today’s episode shows you should take caution when getting involved with crypto. If you decide to buy any crypto, make sure you’re not spending more than you’re willing to lose. If you had $10,000 in FTT yesterday, it would now be worth $2,100 – so be cautious if you get involved with cryptos as they’re very risky.