Bitcoin’s price plunged to its lowest level in two years after the announcement of Binance scrapping the acquisition in FTX. The price of the world’s largest cryptocurrency traded as low as $15,625 on Wednesday. The price was down 14% for the day, representing its biggest loss since mid-June.
Binance announced that it will not go through with the plan to acquire crypto exchange FTX. The announcement came just one day after Binance CEO Changpeng Zhao announced that the firm had reached a non-binding deal to buy FTX’s non-U.S. businesses for an undisclosed amount as the latter was facing a liquidity crisis.
FTX Chief Executive Officer Sam Bankman-Fried is reportedly looking at all options available to avoid the collapse after Binance walking away.
Path Trading Partners co-founder and chief market strategist Bob Iaccino noted that he would not be surprised if bitcoin went as low as $9,000.
“I still believe crypto is here to stay but these things need to be cleaned out before you can do serious investments in the space, especially from a traditional finance perspective,” he added.
Bitcoin’s price is down 65% this year amid strong dollars from the Fed’s continuous rate hikes to tame inflation, resulting in investors pulling out of risk assets.