Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $19,351 on Bitstamp — its lowest since October 25.
The pair, along with altcoins big and small, is already starting to show weakness as Binance moves to cancel exposure to FTX’s in-house token FXT.
The token was confirmed by CEO Changpeng Zhao.
In a Twitter thread later on November 7, Zhao defended the decision, while FTX CEO Sam Bankman-Fried tried to reassure markets that his trading platform was able to deliver.
“There have been questions about a large deposit ($580 million) from FTT to Binance, and we have been transparent about the fact that we are closing our FTT position,” Zhao tweeted.
Meanwhile, Bankman-Fried’s appeal seemed to fall on deaf ears. Overnight, FTX saw withdrawals skyrocket, with resource monitoring even displaying negative BTC balances for exchange wallets.
Data from on-chain analytics platform CryptoQuant put FTX’s BTC balance down on November 7 alone at -19,956 BTC.
Other data showed that BTC reserves were only 7.1 BTC at the time of writing, likely due to changes in wallet management.
“FTX, the No. 2 cryptocurrency trading platform, is on a bank run,” Jack Newold, founder of the Crypto Pragmatist newsletter, said:
“Pushed to the brink by a debt crisis and an announcement from its #1 competitor, it has bled $1 billion off the platform in the past few days.”
In another of the many reactions to the ongoing turmoil, Dylan LeClair, senior analyst at UTXO Management, argued that while it may not end up financially for FTX, the transparency of its operations was a cause for concern.
“I don’t think FTX is likely to be insolvent, but I think Alameda’s concerns are notable, if nothing else,” a portion of the Twitter comments stated.
“I don’t think FTX is going down. It might be, but I don’t think so,” Michael Van de Poppe, founder and CEO of trading platform Eight, continued:
“Binance simply wants to sell the position for the reasons discussed, for which the sale was initiated. It is a bit different from $LUNA and Celsius, but they also have similarities.”
Bitcoin is giving up the $20,000 mark
For bitcoin, the outlook remained cloudy as coldness dominated market sentiment.
Related: Financing Rates Hit a 6-Month High Ahead of CPI – 5 Things to Know in Bitcoin This Week
BTC/USD has only recovered $400 from the day’s lows, putting $20,000 out of reach again.
Meanwhile, more volatility was on the horizon as the US midterm elections are due with Consumer Price Index (CPI) data due for release on November 10th.
“$FTT is dropping dramatically, which also shows some weakness in Bitcoin and the rest of the markets,” van de Poppe summed up.
For its part, FTT managed to make a modest comeback on the day after falling to lows just above $15.