Bitcoin (BTC<\/a>) and crypto markets fell heavily into Nov. 8 as contagion from the FTX debacle spilled over.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> showed BTC\/USD falling to $19,351 on Bitstamp \u2014 its lowest levels since Oct. 25.<\/p>\n The pair, along with altcoins large and small, had already begun to show weakness<\/a> as moves by Binance to cancel exposure to FTX\u2019s in-house FXT Token (FTT<\/a>) token were confirmed by CEO Changpeng Zhao.<\/p>\n In a Twitter thread later on Nov. 7, Zhao defended<\/a> the decision, while FTX CEO Sam Bankman-Fried attempted to reassure markets<\/a> that his trading platform was solvent.<\/p>\n \u201cThere were questions about a large ($580m) FTT deposit to Binance, and we were transparent about the fact that we are closing our FTT position,\u201d part of one of Zhao\u2019s tweets read.<\/p>\n Bankman-Fried\u2019s appeal, meanwhile, appeared to fall on deaf ears. Overnight, FTX saw a surge in withdrawals, with monitoring resources even showing negative BTC balances for the exchange\u2019s wallets.<\/p>\n Data from on-chain analytics platform CryptoQuant put FTX\u2019s BTC balance reduction<\/a> on Nov. 7 alone at -19,956 BTC.<\/p>\n Its BTC reserves were reportedly just 7.1 BTC at the time of writing, further data showed, with this potentially due to changes in wallet management.<\/p>\n \u201cFTX, the #2 crypto exchange, is experiencing a bank run,\u201d Jack Niewold, founder of newsletter Crypto Pragmatist, began an investigative Twitter thread by stating<\/a>:<\/p>\n \u201cPushed to the brink by a debt crisis & an announcement from its #1 competitor, ~$1b has bled out from the platform in the last few days.\u201d<\/p><\/blockquote>\n In another of many reactions to the ongoing turmoil, Dylan LeClair, senior analyst at UTXO Management, argued that while it might not be over financially for FTX, the transparency of its operations was cause for concern.<\/p>\n \u201cI don\u2019t think it\u2019s probable that FTX is insolvent, but I think the Alameda worries are notable, if nothing else,\u201d part of Twitter comments stated<\/a>.<\/p>\n \u201cI don\u2019t think FTX goes down. Might be, but I don\u2019t think so,\u201d Micha\u00ebl van de Poppe, founder and CEO of trading platform Eight, continued<\/a>:<\/p>\n \u201cBinance simply wants to sell the position due to the reasons discussed, through which a sell-off was initiated. Bit different from $LUNA and Celsius, but has similarities as well.\u201d<\/p><\/blockquote>\n For Bitcoin, the outlook remained cloudy as cold feet took hold of market sentiment.<\/p>\n Related:\u00a0Funding rates hit 6-month high before CPI \u2014 5 things to know in Bitcoin this week<\/a><\/em><\/strong><\/p>\n BTC\/USD recovered just $400 from its lows on the day, making $20,000 once more out of reach.<\/p>\n Further volatility was on the horizon, meanwhile, as the United States midterm elections combined with Consumer Price Index (CPI) data due for release on Nov. 10.<\/p>\n \u201c$FTT tanking heavily, through which also Bitcoin and the rest of the markets show some weakness,\u201d Van de Poppe summarized<\/a>.<\/p>\n For its part, FTT managed to stage a modest comeback on the day after falling to lows<\/a> of just above $15.<\/p>\n The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/5e395378-c14e-41b1-97f0-e19724c29735.png\")
Analysts dismiss FTX insolvency fears<\/h2>\n
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<\/figure>\nBitcoin gives up $20,000 mark<\/h2>\n
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