Bitcoin, Ethereum, Dogecoin Rout Deepens: Analyst Says 'Implosion Of FTX Means No One Is Safe'

Major coins plunged sharply on Wednesday evening amid a wider rout as the cryptocurrency market capitalization dropped 11.3% to $812.9 billion at 8:30 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -12.2% -19.8% $16,192.08
Ethereum ETH/USD -13.75% -25.5% $1,143.15
Dogecoin DOGE/USD -13.3% -42.2% $0.076
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Terra Classic (LUNC) +2% $0.00019
PAX Dollar (USDP) 0.2% $1
Fei USD (FEI) +0.2% ​​$1

See Also: Is Binance Better Than Coinbase?

Why It Matters:  Bitcoin and Ethereum appeared to be in freefall on Wednesday evening as a possible rescue of the beleaguered FTX cryptocurrency exchange by Binance was a non-starter.

Bitcoin hit an intraday low of $15,682.69 on Wednesday, while Ethereum sank down to $1,083.29.

Glassnode noted that with Bitcoin prices at the $15,700 level only investors from 2017 and earlier are now in profit.

"Using the average exchange withdrawal price since 1-Jan each year, we can see that the class of 2018 support at $18.5k has been lost, tweeted the on-chain analysis firm.

"Sam Bankman-Fried was supposed to be bulletproof. SBF was crypto's ‘White Knight' and the implosion of FTX means no one is safe," said Edward Moya, a senior market analyst with OANDA.

"The stabilization period for crypto is over and now we wait to see if other contagion risks emerge," he said, in a note seen by Benzinga. 

"No one is talking about buying this crypto dip until we see FTX secure funding and exhaustion happens with the selling of other tokens with ties to it."

Serhii Zhdanov, CEO of EXMO, a cryptocurrency trading platform, said on the FTX crisis, "It's certainly a liquidity crisis. However, this didn't start yesterday or this month. It looks like a midterm consequence of the crypto market fall in May. They had some reserve capacity that helped to hold out for a while but now it is dried up."

CEO of Divi Labs, a decentralized payment ecosystem, Nick Saponaro, said, "Exchanges like FTX, are not crypto or blockchain companies. They are essentially banks with less regulation, oversight, and, most importantly, responsibility to the consumers they serve.”

Cryptocurrency trader Michaël van de Poppe described Thursday's market movement as "Capitulation" on Twitter. In a separate post, he said, "Absolutely terrifying. Stay safe!"

Justin Bennett said Bitcoin could see "possible relief" at $13,900 this week. "Confluence of the 2019 consolidation high and linear trend line from the ATH. Also, not many long liquidations sub $15,000," said the cryptocurrency trader.

CryptoQuant analyst Maartunn noted that 80,000 BTC left exchange wallets in 24 hours leading up to Wednesday. 

"People are losing confidence in those companies, very logic after the mess we’ve seen in the past few days."

Read Next: Binance CEO Says No ‘Master Plan’ To Take Over FTX, Warns Employees ‘DO NOT Trade FTT Tokens’

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