Crypto, stocks slip off, while investors digest the FTX decline, intermediate results

Crypto, stocks slip off, while investors digest the FTX decline, intermediate results

crypto and stocks extended their declines on Wednesday, when the investors were looking for the outstanding interim election results and updates regarding the apparently canceled plans from Binance to buy FTX.

One day after his short -lived comeback over $ 20,000 on Tuesday, Bitcoin fell under $ 16,000 and acted by 14 % lower from 4:45 p.m. Ether followed and fell to the lowest prize since July and barely stopped on the $ 1,100 mark on Wednesday afternoon. Almost two months after the merger, Ether became deflationary on Wednesday, since the offer decreased thanks to increased transaction demand and increasing gas fees.

The decline does not come as a surprise for analysts, who said that in view of the uncertainty about the solvency and legal status of FTX, volatility can be expected, as well as concerns that the originally well -taken rescue of Binance may not come.

Future of FTX in doubt

Like some predicted, Binance left his previous promise and tweeted on Wednesday afternoon that it would not continue to take over FTX.

Stefan Rust, CEO of the immersive web tech agency Laguna Labs, said on Tuesday that he considers it "extremely unlikely" that the takeover of FTX would ever be taken into account by Binance, and added that Binance CEO Changpeng Zhao simply "try to curb the blood flow".

Sam Dibble, a partner of the Baker Botts law firm, also had the question of whether the deal would be completed. He said BlockWorks on Wednesday - before Binance said it would not follow the takeover - that he regarded the company's step as "a attempt to form the trust in the market".

Dibble had said that the intended transaction could become a financing business.

"Binance could say: 'Well, we thought about taking over the company, but it turns out that we want the assets and not the liabilities," he said. "This kind of changes in the structure of a deal pass constantly [mergers and acquisitions] if you have a non -binding termheet."

"I imagine that transparency about the size of the hole in the balance of FTX and probably the liquidations and competitions that could follow that will be the maximum blood within crypto," said Matt Fiebach. Research Analyst at Blockworks, said.

The stocks go down strongly before the CPI print on Thursday

Outside of the crypto-complaint, the shares also crashed. The indices S&P 500 and Nasdaq Composite closed 2.1 % or 2.5 % lower. The uncertainty about the future of the Federal Rates, of which the chairman of the Federal Reserve, Jerome Powell, had indicated that they could reach 5 %, in connection with the election results that still arrive after the IPO, the dealers alerted. Meanwhile, the dollar index (DXY) rose by 0.75 % and thus returned the course slide from Tuesday.

"The current situation reflects the relative improvement of the prospects, since the rising global returns no longer put pressure on the shares," said Tom Essaye, founder of Sevens Report Research. "But that's about the only positive one we saw last month."

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The Post Crypto, Equities Slide as Investors Digest Ftx Fall, Midterm Results is not a financial advice.