Bitcoin price falls: Binance blows off FTX purchase

Binance CEO Changpeng Zhao
Image: Reuters

Just a day after announcing it would buy rival, the largest crypto trading platform Binance is calling off the deal. As a result, the Bitcoin price continues to fall.

Dhe cancellation of the takeover of announced just a day earlier was announced on Wednesday Bitcoin pushed close to $16,000. The market’s largest and oldest digital currency recently fell to $ 16,148. In the morning, the course was temporarily more than $ 18,000. Subsequently, speculation about the bursting of the takeover had already caused Bitcoin to fall below $17,000.

The price losses were triggered by renewed concerns about the stability of the comparatively young crypto sector, which arose on Tuesday. The rival resigned after reports of liquidity problems at the major trading venue FTX binance the partial takeover of the competitor. Accordingly, there are said to have been significant outflows of funds from investors at FTX. Before the reports, Bitcoin was still trading at over $20,000 on Tuesday.

According to corresponding press reports, Binance confirmed on Wednesday shortly before the close of the US stock exchanges that the takeover of had been called off. The trading platform’s difficulties exceeded the company’s ability to assist, it said in a statement.

“There are obviously doubts that a liquidity crisis and the associated risk of contagion for the industry cannot be averted after all,” expert Timo Emden from Emden Research wrote before Binance’s statement. If prices continue to fall, quite a few companies are likely to face existential fears.

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