Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Bitcoin (BTC/USD) Drops 13% as Binance Back Out of FTX Acquisition

Bitcoin (BTC/USD) Drops 13% as Binance Back Out of FTX Acquisition

Key Points:

  • BTC/USD Slides 13% to Post a New YTD Low.
  • Binance Backs Out of a Deal to Acquire FTX on Rumors of SEC and US Justice Department Investigation.
  • FTX CEO Sam Bankman-Fried Confirms a Shortfall of $8 billion to Investors.
Bitcoin Forecast
Bitcoin Forecast
Recommended by Zain Vawda
Get Your Free Bitcoin Forecast
Get My Guide

MOST READ: Bitcoin Slumps as FTX and Binance Spat Hits Market Sentiment

Bitcoin (BTC/USD) Fundamental Outlook

The cryptocurrency space as a whole has experienced a tumultuous couple of days kicked off by fears around liquidity and solvency at FTX, one of the largest players in the space. The resulting impact has seen Bitcoin and a host of altcoins post significant losses as more information came to light including a letter of intent by Binance to acquire FTX. Bitcoin dropped as low as $15650 (November 2020 price) before rallying in Asian trade back above the $16000 handle. The largest crypto by market cap currently trades around the $16400.

Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Zain Vawda
Get Your Free Introduction To Cryptocurrency Trading
Get My Guide

MOST READ: Bitcoin (BTC/USD) Plunges as Binance, FTX Deal Looms

Rumors began filtering through early Wednesday that Binance were reluctant to go through with the rescue deal given the size of the hole in the books of FTX. Late on Wednesday afternoon Binance confirmed in a statement that it would not be proceeding with the deal due to corporate due diligence, news reports regarding the alleged mishandling of client funds and alleged US agency investigations.

Graphical user interface, text, application  Description automatically generated

According to reports FTX CEO Sam Bankman-Fried told investors in a call on Wednesday that the crypto exchange faced a shortfall of up to $8 billion dollars with $4 billion needed to remain solvent. The embattled CEO is attempting to raise further financing in the form of equity or debt as the potential of a bankruptcy filing looms. Risk assets and market sentiment suffered due to the FTX rescue deal falling through as concerns grew regarding the potential knock-on effect to other assets.

BTC/USD Daily Chart – November 10, 2022

Chart, line chart  Description automatically generated

Source: TradingView

From a technical perspective, BTC/USD had been rangebound since June trading between the $18000 and $25000 levels. The moving averages are all beginning to point to the downside which doesn’t bode well for the pair with the next key support area resting down at $12300.

Given the momentum behind the decline should the pair push higher toward the $18000 level sellers could reignite their interest with $12300 becoming a realistic target.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Resources for Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicators for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

Written by: Zain Vawda, Market Writer for

Contact and follow Zain on Twitter: @zvawda

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