After the developments surrounding one of the largest cryptocurrency exchanges sent shockwaves across the crypto sector, most of its participants continue to count their losses, with the market as a whole losing tens of billions of dollars.
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As it happens, the carnage following the FTX drama has inflicted a grievous wound to the crypto market capitalization, bleeding it by more than $100 billion in a day, as per data retrieved by Finbold from CoinMarketCap on November 9.
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Specifically, the global crypto market has dropped from $983 billion to $880 billion during the previous 24 hours, which means it has lost $103 billion or more than 10% during this period and $110 billion across the week.
Total cryptocurrency market cap 24-hour chart. Source: CoinMarketCap
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Notably, the most significant decline happened hours after it became known that FTX was on the verge of collapse, with the market plummeting from its highest point of $1.027 trillion to as low as $827 billion.
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Crisis begins
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As a reminder, the crisis began after it was revealed that the balance sheet of Sam Bankman-Fried’s trading firm Alameda Research mainly consisted of the FTX Token (FTT), demonstrating a close connection between the two parts of his business empire.
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In response to this revelation, Binance liquidated $500 million worth of FTT on November 6, putting FTX in a bit of a liquidity crunch, and initiating some bickering on Twitter between the two, which OKX CEO warned could have devastating consequences.
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As a result, the FTX token sank as much as 80% in a single day, wiping almost $2.5 billion from its market cap, as Finbold earlier reported.
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Crisis averted?
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However, in a surprising turn of events, Binance reached out to its competitor on November 8 by making a non-abiding agreement to acquire FTX in a bid to help it recover and stop the crisis from spreading across the industry after the crypto exchange asked for assistance.
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That said, the damage already seems to be done, as the effects of the crisis have spilled over onto all other assets, including Bitcoin (BTC), which has dropped more than 9% on the day and is now trading at $17,917.
Bitcoin 24-hour price chart. Source: Finbold
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It remains to be seen how much Binance’s most recent actions will help alleviate these consequences as uncertainty continues to surround the market.
