In the cryptosphere sales of digital assets intensified, but this is likely a temporary phenomenon.
November 7-8 is characterized by sales of digital assets. The main reason for such behavior of investors lies in the difficult communication between the cryptocurrency exchanges FTX and Binance. Recall that at the beginning of the week at Binance statedearlier this week that they will sell their tokens FTT, but announced that this process will be gradual and will take a long time.
On the one hand, FTX sees that there are machinations of a “competitor”, without specifying what they mean, and stressed that FTX has all the necessary reserves, refuting recently appeared unverified information about the lack of liquidity of its assets. Meanwhile, both such information and its refutation are based on words, not on any submitted public audited financial statements.
In such a situation of high uncertainty about what is actually happening, digital asset sales intensified on November 8. And on the movement of cryptocurrencies on the blockchain, analysts began to build hypotheses about what was happening, but there was no independent and reliable confirmation of these assumptions. As a result, the FTX token lost up to 40% on a daily basis. Binance has declared that they are not behind the collapse of the FTX token price.
Moves on the blockchain were noticeable on digital assets BNB and SOL, and while the former recorded a decline of around 1%, SOL saw a decline of 11%.
BIT token platform BitDAO was also affected by the sell-off, losing 20% in the moment. However, Alameda, the trading arm of the FTX crypto exchange, said it had nothing to do with the drop, reacting to speculation from BitDAO that Alameda was selling its BIT tokens. Again, there were only statements on both sides on social media, but not any more substantive confirmation of their theses.
In such a situation of uncertainty, the price of bitcoin also went down, down 4.2%, dropping beyond the $20,000 level to $19,800.
The cryptosphere’s version of the BNB and SOL sell-offs as FTX selling these digital assets to support the platform’s liquidity has not only not been recognized by this crypto exchange, but it is also impossible to confirm or deny. In percentage terms, the not strong bitcoin price reaction, as well as the reduction in the rate of decline of SOL, which at the moment was falling by 20%, indicates the short-term nature of the sell-off currently observed in the cryptocurrency market.