Bloodbath In Crypto Market, Why Is Crypto Crashing Today?

Most crypto prices jumped on Tuesday on news that Binance, the largest crypto exchange in the world, would be buying out its rival FTX, but prices soon tanked as the world woke up to the news.

Today’s sharp decline in cryptocurrency prices has erased billions of dollars from the whole market, pushing it below the closely-watched $1 trillion threshold. Bitcoin fell by 12% and Ethereum by a whopping 17% in the 24-hour time frame.

However, the most impacted token on the list is FTT, the native token of the crypto exchange FTX. The token has plummeted by a staggering 48% in the 1-hour chart and over 81% in the past 24 hours.

The news around FTX’s insolvency and buyout has caused mass panic-selling across investors. This has led to the withdrawal of funds across exchanges in order to safeguard from uncertain price swings in the market.