After Binance, the world’s largest cryptocurrency exchange, announced its plans to acquire FTX, investors rushed to this altcoin project.
Investors hearing the news of Binance price the floor prices
The conflict in the middle of the exchanges was resolved recently with Binance’s announcement to buy FTX. Now, according to on-chain information, investments are trying to buy Ethereum (ETH) at a low price after the news. Binance’s buy-in leap queued up Ethereum, which lost around 8% during the day due to positive expectations. Currently, both individuals and whales are busy collecting ETH at the base price.
The demand for Ethereum comes after FTX and Binance CEOs’ statements on Twitter. Binance CZ announced that they plan to buy the exchange entirely to address the important liquidity issues that FTX is experiencing. It also stated that FTX will “always” have the right to withdraw from the settlement. Koindeks.comWe have covered the details in this article.
Ethereum soared more than 7 percent in just one hour
On-chain information shows that Ethereum (ETH) investors are buying the dip. According to CoinMarketCap, ETH is currently recapturing the $1,500 region following the above news. Its price has risen more than 7.78% at one point in the past hour. It is experiencing correction at the same rate at the time of writing due to much volatility.
Following the statement from CZ and SBF, the price of FTT also recovered significantly. However, just like ETH, it is experiencing a drastic correction. The FTT Token (FTT) peaked from $15 to $18 initially following the news of Binance’s acquisition. It is currently down to its intraday low of $11 accompanied by additional selling.
Investors who hear the news of Binance follow this model
Santiment says the dispersal of Ethereum investors indicates a definite bearish buying trend. All large or medium-sized Ethereum wallets tried to have a stake in Ethereum, which fell to $ 1,400 after the positive news. Currently, wallets holding up to 10 ETH accumulate heavily. This pattern is indicative of cryptocurrency investors trying to shift funds from altcoins to Ethereum and other well-known cryptocurrencies. However, it is not clear whether the upward momentum will continue for much longer.
If investors take their profits from altcoins and switch to blue-chip equities, the rally may finally end. In this midst, it was previously found that over 90% of Ethereum (ETH) assets were removed from the FTX main wallet. But Sam Bankman-Fried explained that FTX has enough assets to cover every client holding.