Crypto crash in the crypto market, why are crypto currencies crashing today?

Bitcoin, Ethereum, and other major crypto-currencies fell following the announcement of Binance’s takeover of FTX due to a liquidity crunch.

Most crypto prices jumped Tuesday on news that Binance, the world’s largest crypto exchange, would buy out rival FTX, but prices quickly fell as the world woke up to the news.

The sharp drop in crypto-currency prices seen today wiped billions of dollars off the entire market, pushing it below the closely watched $1 trillion mark. Bitcoin fell 8.80 percent and Ethereum fell 13.34 percent over a 24-hour period.

However, the hardest-hit token on the list is FTT, the native token of the FTX crypto-currency exchange. The token tumbled 45% in the one-hour chart and more than 60% in the past 24 hours.

News of FTX’s insolvency and takeover caused massive panic selling among investors. This led to the withdrawal of funds from the stock markets in order to protect themselves from uncertain price fluctuations in the market.