Bitcoin jumped to $20,700 following the announcement of Binance’s plans to acquire FTX.
The leading cryptocurrency by market cap had been trading down at around $19,200 earlier in the day but surged 7.6% following the news.
However, the reversal was short-lived, as BTC has fallen back to $18,800 as of press time. Bitcoin fell as low as $18,420 before recovering slightly. The price action appears to be related to the liquidity crisis at FTX and the potential death spiral of the FTT token.
![btc drop](https://cryptoslate.com/wp-content/uploads/2022/11/Screenshot-2022-11-08-182216-1024x642.jpg)
The surge in Bitcoin’s price came after Binance announced it would acquire FTX, which temporarily caused the FTT token to jump 44% to $20.80. The token, however, only recovered for a short period and is now down to just $9.40 less than 2 hours after the acquisition announcement.
![FTT death spiral](https://cryptoslate.com/wp-content/uploads/2022/11/Screenshot-2022-11-08-182119-1024x642.jpg)
There has been $85.94 million in Bitcoin liquidations over the past 4 hours throughout Nov. 8. Across the entire crypto market, $303.68 million has been liquidated. The majority of the liquidations were from long positions, according to data from Coinglass.
![coinglass liquidations](https://cryptoslate.com/wp-content/uploads/2022/11/Screenshot-2022-11-08-182959-1024x164.jpg)
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