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.
Nov 10, 2022 at 12:00 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/3XX2OJUYDNDCDGAWSBXTGIH5K4.jpeg)
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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.”
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
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