The crazy ride in the cryptocurrency market continues. First another fall, then a quick recovery

The goings-on around one of the world’s biggest cryptoexchanges is evolving in an unexpected direction. While still midweek it seemed that the helping hand of the FTX cryptocurrency exchange would be filed by its competitor Binance, on Thursday the situation changed.

FTX solvency problem

When there was a cry that the FTX cryptocurrency exchange had a solvency problem, there was a panic in the markets and cryptocurrencies fell freely to the ground. Bitcoin has lost over 10 percent of its value. The appeasement came after the owner of rival cryptoexchange Binance, Chinese billionaire Zhao, said on Twitter that it might take over FTX.

The Binance decision caused another fall in criptocurrencies

But the very next day it became clear that Binance would give FTX his hands off. It said after studying the details of a possible transaction. This worked as another detonator on cryptocurrencies and the fall continued. Bitcoin has found a foothold at 16 thousand dollars. During Thursday’s trading, however, a turnaround came and cryptocurrencies began to rise, Bitcoin solidified by more than 12 percent.

Cryptocurrencies have been helped by better-than-expected inflation developments in the US, but also by the news that another Chinese entrepreneur, Justin Sun, could save the FTX exchange. Sun is the founder of the blockchain ecosystem Tron and offered FTX a helping hand, according to the portal Coindesk.com.

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The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

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