Bitcoin Suddenly Plunges Below $20,000. Here’s Why

Bitcoin Suddenly Plunges Below $20,000. Here’s Why

Bitcoin

The price of Bitcoin suddenly has once again plunged below the psychologically important $20,000 level.

The world’s largest cryptocurrency reached an intraday low of $19,559 at 4:20 UTC on the Bitstamp exchange.

According to cryptocurrency data platform Coinglass, $112.83 million worth of crypto has been liquidated over the past hour alone. Long positions account for a whopping 94.94% of the wiped-out positions.

The recent drop is likely the result of cryptocurrency contagion triggered by the uncertainty of crypto giant FTX in light of its recent spat with Binance.

The FTT suddenly plunged 14% in a single hour. The exchange token is now down a staggering 25.64% over the past day.

According to blockchain analytics platform PeckShield, $284 million worth of crypto has been withdrawn from the FTX exchange from a whale.

As reported by U.Today, Binance CEO Changpeng Zhao shocked the market by announcing that the company had decided to sell all of its FTT tokens. This came amid rumors that Alameda Research, a firm closely tied to FTX, had financial troubles.

However, Bankman-Fried said that the firm’s assets were “fine,” in an attempt to put false rumors to bed.

At the same time, Binance CEO Changpeng Zhao clarified that he wasn’t trying to fight FTX.

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