%Cryptocurrency prices are plunging across the board following news that %Binance is pulling out of its deal to purchase struggling cryptocurrency exchange %FTX .
The price of %Bitcoin () fell 15% to $16,084 U.S., its lowest level since November 2020. The price had been above $20,000 U.S. to start the trading week.
%Ethereum , the second largest cryptocurrency by market value, declined 13% to $1,175.00 U.S. Other digital coins and assets saw their prices fall by 10% or more.
FTX had agreed to sell itself to rival crypto exchange Binance after experiencing a liquidity crisis. Customers demanded to pull more than $6 billion U.S. from the exchange this week after becoming concerned about whether FTX had sufficient capital and legitimate finances.
Binance, the world’s biggest cryptocurrency exchange by trading volume, had agreed to buy FTX but quickly backed out of the deal after beginning its due diligence process, saying on Twitter “…the issues are beyond our control or ability to help.”
Binance cancelling the deal leaves FTX short a reported $8 billion U.S. and on the verge of collapse. That prospect has spooked investors and shocked the entire crypto sector.
Shares of publicly traded exchanges that are exposed to cryptocurrencies have also declined sharply. %Robinhood () shares fell 14%, and %Coinbase () stock dropped 10% in trading yesterday (November 9).