The crypto market dipped 10.6% in the last 24 hours, with Bitcoin and Ethereum leading the decline with steep plunges. The crypto market now stands at $914 billion.
Solana, hitherto a favourite competitor to Ethereum, had an even greater decline, with some tweeps joking that they are waiting for it to go to $1 so they can buy more.
The crypto market dip is influenced by many factors, including the FUD surrounding the troubled exchange FTX. The exchange is facing a liquidity crunch and had gone private at some point amid talks of a bank run that would invariably affect not just the exchange but the crypto market generally.
An analogy is often made to LUNA and how FTX is possibly going the same way. Binance, which had initially indicated interest in buying FTX, had backtracked, citing some plausible reasons.
With FTX getting back online and allowing users to interact with their accounts but temporarily barring them from making withdrawals, the FUD persists, invariably affecting the crypto.
And according to analysts, it might continue, as users are yet to get closure on what’s going on at FTX and if they can still access their crypto.
For the crypto market, clearly, it is not yet uhuru.