Bitcoin Falls to New Yearly Low at $16.8,000 as FTX Insolvency Fears Turn to Contagion

Crypto markets tumbled for a second day as the fallout from FTX’s liquidity issues continued to negatively impact investor sentiment.

The price of Bitcoin (BTC) fell to a new yearly low of $16,800 as unconfirmed unnamed sources suggested that after further review of FTX’s books, Binance may renege on its deal to acquire the exchange besieged.

Crypto market performance. Source: Coin360

Another factor potentially impacting the market is a wave of successive liquidations in Solana’s decentralized financial markets. Earlier today, cryptocurrency exchange sent by e-mail its users to inform them that all Solana-based USD Coin (USDC) deposits have been suspended.

A review on the website also said:

“Please note that we have suspended USDC and USDCT deposits and withdrawals on the Solana Blockchain in the app and exchange.”

At the time of writing, Solana native SOL (SOL) coin price is down 34%, trading at $16.10. FTX’s native FTX (FTT) token is also down 32% on the day and trading at $3.78.

Data from Coinglass shows $832 million in total liquidations in the last 24 hours, and many traders expect this figure to rise.

Total daily crypto market liquidations. Source: Coinglass

Related: Galaxy Digital discloses $77m exposure to FTX, $48m likely locked in withdrawals

For more information on what’s going on with FTX, click here to watch Cointelegraph Markets’ explanation of the situation.