Crypto markets crumbled for a second day as the fallout from FTX’s liquidity troubles continued to negatively impact investor sentiment.
Bitcoin (BTC) price fell to a new yearly low at $16,800 as anonymous unconfirmed sources suggested that after a closer review of FTX’s books, Binance could back out of its agreement to acquire the beleaguered exchange.
Another factor having a potential impact on the market is a wave of successive liquidations in Solana’s decentralized finance markets. Earlier in the day, cryptocurrency exchange Crypto.com emailed its users to inform them that all Solana-based USD Coin (USDC) deposits had been suspended.
A notice on the Crypto.com website also said:
“Please be informed that we have suspended deposits and withdrawals of the USDC and USDCT on the Solana Blockchain in the Crypto.com App and Exchange.”
Data from Coinglass shows $832 million in total liquidations over the past 24 hours, and many traders expect the figure to increase.
For further backstory on what is happening with FTX, click here to watch Cointelegraph Markets’ explainer on the situation.
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