Bitcoin tests below $16,000 as Ethereum breaches $1,100

In the early hours of November 10, Bitcoin traded below $15,600 on Binance. Ethereum breached the $1,100 level.

In the past 24 hours, the leading cryptocurrencies fell 9.5% and 9.7% respectively. At the time of writing, Bitcoin trades around $16,750, Ethereum at $1,184.

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According to CoinGecko, total crypto market capitalization declined by almost 9%, to about $874 billion. Of the largest digital assets, BNB Coin posted the worst daily performance (-12.1%).

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Solana (SOL) price collapsed by 22% (-48% in a week) — the asset left the top-10 by market cap. This is explained by the concentration of SOL, SRM and other ecosystem tokens in the hands of Alameda Research, which is linked to the troubled FTX exchange.

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According to Huobi Research, there is a \”high risk of liquidation\” for SOL in lending protocols. Analysts noted that this would lead to a \”significant drop in price\”.

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Huobi Research: The projects directly invested by FTX and Alameda as well as centralized institutions with which FTX has direct lending/borrowing and other cooperation relationships, will be the most important victims of this Lehman incident. pic.twitter.com/xJJuNEuhtY

— Wu Blockchain (@WuBlockchain) November 10, 2022

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Against concerns about SOL’s resilience, Solana validators are actively unstaking the cryptocurrency. According to Solana Compass, after epoch 370 more than 31 million coins (~$490 million at the time of writing) will hit the market.

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The market crash triggered a broad wave of liquidations. According to Coinglass, positions worth $694 million were forcibly liquidated in the last 24 hours. Of these, nearly $60 million relate to SOL.

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JPMorgan strategists say that a \”cascade of margin calls\” could push Bitcoin prices down to $13,000. JPMorgan strategist Nicolas Panigirtzoglou stressed that this process, prompted by the FTX and Alameda crisis, has already begun.

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On November 6, Binance CEO Changpeng Zhao stated the exchange’s intent to dispose of the FTX utility token (FTT). Assets together with BUSD totaling about $2.1 billion were the result of the company’s exit from its portfolio investment in the platform.

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Against concerns about FTX’s financial resilience, the price of FTT plunged.

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On November 8, Sam Bankman-Fried and Zhao announced a strategic partnership. It was intended to address the liquidity crisis and envisaged a possible acquisition of FTX.

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On November 9, it emerged that Binance refused to acquire the troubled rival.

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Earlier, Coin Metrics suggested that a possible cause of FTX’s collapse was a large financial aid that the exchange provided to Alameda Research in Q2 2022.

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