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Bitcoin (BTC) Slumps as FTX and Binance Spat Hits Market Sentiment

Bitcoin (BTC) Slumps as FTX and Binance Spat Hits Market Sentiment

Nick Cawley, Senior Strategist

Bitcoin (BTC) Charts and Analysis:

  • The crypto space is under pressure as two of the biggest names lock horns.
  • Bitcoin looks vulnerable to further losses.
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Two of the biggest names in the cryptocurrency space, Changpeng Zhao (CZ) the co-founder and CEO of the world’s largest crypto exchange Binance, and the founder of crypto exchange FTX, Sam Bankman-Fried, are involved in an increasingly hostile Twitter exchange which is rattling market sentiment.

How to Use Twitter For Traders

Earlier this week, Binance CEO tweeted that they would be selling their native FTX tokens (FTT) ‘due to recent revelations that have come to light’. The amount of FTT tokens was a fraction under 23 million, worth at the time around USD584 million.

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The revelations mentioned are thought to be in response to suggestions that FTX has been, in CZ’s words, lobbying ‘against other industry players behind their backs’. The tweet by CZ also prompted market rumors on the liquidity and strength of FTX’s balance sheet.

In response, Bankman-Fried tweeted,

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The FTX CEO, Caroline Ellison also got involved on Twitter, saying that the company’s balance sheet was strong and also offering to buy all of Binance’s 23 million FTT tokens for $22 each, an offer CZ turned down. FTX tokens (FTT) are currently trading at $17.33, down over 23% over the last 24 hours.

With this spat between two of the most high-profile players in the market ongoing, it is difficult to see the crypto market push higher. Over the last couple of weeks, the market has been very slowly edging higher after a multi-month period of flat-lining. The ease with which the market gave back all these gains overnight is worrying and support levels should be closely watched in the days ahead. The daily BTC/USD price has dipped below both the 20- and 50-day smas again which adds to the cautious outlook.

Bitcoin (BTC/USD) Daily Price Chart – November 8, 2022

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Chart via TradingView

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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