Bitcoin (BTC) dropped to new yearly lows on Wednesday as crypto traders processed the news that Binance has walked away from the deal to acquire the embattled FTX exchange.
A spokesperson for the crypto exchange said FTX’s issues “are beyond our control or ability to help.”. Binance had on Tuesday said it would buy the billionaire Sam Bankman-Fried’s FTX after what appeared to be a severe run on deposits.
The price of bitcoin hit lows of $15,769 on the crypto exchange coinbase, setting new yearly lows in the process.. As of press time the BTC price was trading at $16,074, down 14% over the past 24 hours.
Charles Edwards tweeted, ‘’Many Bitcoin miners are now turning their rigs off. Bitcoin’s electrical cost has just been breached for the 2nd time only in 5 years. The electrical bill for the average miner is now greater than the income earnt’’.
This week, the average price of cryptocurrencies exposed to Sam Bankman-Fried and his businesses, Alameda Research and FTX, fell by 40%. The daily performance of Solana SOL is on pace to be the worst ever recorded.
As a result of its connection to Sam Bankman-Fried, the founder of the cryptocurrency hedge fund Alameda Research and the cryptocurrency exchange FTX, SOL’s price fell by 44% to about $13 on November 9.
Fried invested in the Solana blockchain project through Alameda Research very early on. According to Bloomberg Billionaires Index, the entrepreneur’s estimated net worth dropped from a staggering $15.6 billion to just over $1 billion on November 8.
Since November 6, the value of tokens associated with the FTX founder such as Raydium (RAY), Bonfida (FIDA), and Maps (MAPS), has decreased by an average of 40%.
Nouriel Roubini Says Markets Aren’t Done Falling in This Bear Market
According to Nouriel Roubini, this bear market’s market decline is far from over. At least, he argues, brace yourself for another 20% lurch.
There are two possible outcomes for the stock market, according to Dr. Doom himself: bad and miserable. This year, the S&P 500 has fallen precipitously. After falling more than 20% from its prior high established in January, it formally entered a bear market in June. Investors have cautioned that even though it has staged a number of minor recoveries since then, stocks are still generally down, and the bear market likely still has months to run.
One of the select few who correctly forecast the 2008 financial crisis, Nouriel Roubini, told Fortune that stock watchers shouldn’t have high expectations.
Roubini told Fortune in a recent interview. “Now it’s down only 20% so we have another 20% to go.” This might in a way extrapolate to cryptocurrencies which have maintained a relatively high correlation with stocks so far in 2022.
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