Bitcoin price swings to over $20K as Binance helps FTX ‘liquidity crunch’
Bitcoin (BTC) saw major volatility after the Nov. 8 Wall Street open as turmoil over crypto exchange FTX punished markets further.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $19,244 on Bitstamp, marking the pair’s lowest levels in two weeks and 24-hour losses of nearly 7%.
FTX remained the main topic in the industry, despite the United States midterm elections getting underway and Nov. 10 due to deliver fresh inflation data.
“Event of the week was supposed to be US CPI on Thursday, not two billionaires with acronyms for names nuking the market,” popular commentator Tedtalksmacro summarized.
Worries over solvency at FTX were not helped by a lengthy silence from the exchange’s executives as withdrawals stopped on the day.
Data from on-chain analytics platform CryptoQuant thus showed only a fraction of the previous day’s near-20,000 BTC balance reduction on FTX for Nov. 8.
Further numbers revealed that exchange users were voting with their wallets elsewhere — removing funds from U.S. platforms such as Coinbase and depositing them to foreign-registered competitors such as Binance.
Binance was up a net 4,840 BTC for Nov. 8 at the time of writing, while Coinbase was conversely down 5,180 BTC.
Engineer and trader Tree of Alpha nonetheless stayed optimistic about the eventual resolution of the FTX saga.
“For now we suffer,” part of a tweet read, adding that the “news playbook is omega long ftt + majors if prices are still that bad when SBF and/or CZ announce they reached a deal and funds safu on both ends and withdrawals are back on.”
That thesis turned out to be true, as the resumption of withdrawals sparked an instant march over $20,000 for Bitcoin.
A surprise message from Binance CEO Changpeng Zhao
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