The global cryptocurrency market is seeing a sharp decline as Bitcoin faces a meltdown. The popular crypto down by 7.15% in the last 24 hours was trading at $18,306. Ethereum has holding at $1,306, losing 11.30% of its value in the last 24 hours. The major altcoins are also seeing red. Solana is down by 18.56% in the last 24 hours, Dogecoin 13.83%, Polygon 11.61% and XRP lost 9.86%.
The crypto market took a hit following Binance’s so-called liquidity crunch. Declines spread across the market like wildfire, with Sam Bankman-Fried’s companies and assets tied to Alameda suffering some of the biggest losses. Reports say Alameda Research may have to dump some of its holdings to raise liquidity as it was off nearly 22%. The fresh market crash comes amid the U.S midterm election and the ongoing macroeconomic changes. The crypto market is likely to see a continued slide in the coming days.
Analysts believe the price plunge breaks Bitcoin’s short-term correlation to the stock market; the tech-heavy Nasdaq is down by 0.32%, but Dow Jones gained 0.48% on the back of investors’ optimism. Data suggests that $614 million in Bitcoin longs are at risk of liquidation, $224 million was alone liquidated on November 8. BTC’s price plunge is a reaction to the stress on the market by FTX.
Allaire, the Circle CEO, described the FTX crisis as the crypto industry’s “Lehman Brothers” moment (which had offset the 2008 financial crisis). He said the downturn hasn’t affected Circle’s USDC. Allaire touted USDC as the largest stablecoin and any negative change that affects it would be catastrophic.