Over $640 million in trades have been liquidated from crypto markets in the aftermath of FTX’s drama with Binance.
Markets experienced a brief rally after Binance announced its intention to buy FTX, but have since retraced while FTX Token continues to dump.
According to Coinglass, over $640 million in liquidations have taken place in the last 24 hours, with $182 million liquidated in the past hour alone.
The largest single liquidation took place on BitMEX on a Bitcoin / US dollar trade for $3.12 million.
Over $10 million in liquidations have occurred on FTX Token (FTT) trades. With over $3 million worth cleared in the past hour.
The token’s price began to collapse on Monday after Binance confirmed it would be exiting its 22 million FTT position.
Binance has now agreed to buy out FTX to help it navigate its “liquidity crunch.” FTX suffered overwhelming withdrawal demand earlier this week, and seemingly stopped processing withdrawals entirely on Tuesday.
Crypto markets seemed to rally immediately after the news, with Bitcoin returning above its $20,000 level. Even FTX token briefly recovered from $14.91 to $19.24 in the minutes after CZ and SBF’s respective tweets.
However, markets quickly took a reversal to some of their lowest levels in weeks.FTT is now worth just $9.09, per data from CoinGecko, and continues to collapse in real-time.
FTT / USD. Source: CoinGecko
Meanwhile, popular cryptos Bitcoin and Ethereum have fallen under $19,000 and $1,400 respectively, their lowest levels in over two weeks.
Binance CEO Changpeng Zhao clarified that his company reserves the right to back out of the FTX deal at any time.
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