Crypto Stocks Continue Drop as Binance Walks Away from FTX Deal
Concerns around FTX's health along with the broader crypto ecosystem spilled into the stock market Wednesday.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/3XX2OJUYDNDCDGAWSBXTGIH5K4.jpeg)
(Sophie Backes/Unsplash)
Cryptocurrency-exposed equities continued their dip Wednesday amid concerns around FTX’s financial health as Binance confirmed Wednesday afternoon it scrapped its letter of intent to buy rival exchange FTX.
Shares of tech firm MicroStrategy (MSTR), which holds about 130,000 bitcoins, fell 20% Wednesday. Crypto exchange Coinbase (COIN) dropped 9.5%. Crypto-focused bank Silvergate (SI) declined 12%, while financial services firm Galaxy Digital (GLXY.TO) fell 16% on the Toronto stock exchange. The stocks of bitcoin miners Riot Blockchain (RIOT) and Marathon Digital (MARA) also took a hit.
Bitcoin (BTC) fell about 15% to below $16,000, while ether (ETH) dropped 15%, trading near $1,100.
Aside from the Binance-FTX failed deal, the U.S midterm election has been a key focus, though crypto has spilled over into the broader market Wednesday. The tech-focused Nasdaq Composite Index (IXIC) fell about 2.5%.
“What is complicating today’s mood on Wall Street is that the liquidity crisis for FTX is spilling over into other cryptos,” Edward Moya, Oanda’s senior markets analyst, said in a note Wednesday afternoon. “FTX was viewed as one of the so-called safe crypto players, and its demise is raising concerns that other key crypto companies could be vulnerable here.”
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.