Crypto Stocks Continue Drop as Binance Walks Away from FTX Deal

Cryptocurrency-exposed equities continued their dip Wednesday amid concerns around FTX’s financial health as Binance confirmed Wednesday afternoon it scrapped its letter of intent to buy rival exchange FTX.

Shares of tech firm MicroStrategy (MSTR), which holds about 130,000 bitcoins, fell 20% Wednesday. Crypto exchange Coinbase (COIN) dropped 9.5%. Crypto-focused bank Silvergate (SI) declined 12%, while financial services firm Galaxy Digital (GLXY.TO) fell 16% on the Toronto stock exchange. The stocks of bitcoin miners Riot Blockchain (RIOT) and Marathon Digital (MARA) also took a hit.

Read more: Bitcoin, Crypto-Linked Equities Resume Falling Despite Binance/FTX Deal

Bitcoin (BTC) fell about 15% to below $16,000, while ether (ETH) dropped 15%, trading near $1,100.

Aside from the Binance-FTX failed deal, the U.S midterm election has been a key focus, though crypto has spilled over into the broader market Wednesday. The tech-focused Nasdaq Composite Index (IXIC) fell about 2.5%.

“What is complicating today’s mood on Wall Street is that the liquidity crisis for FTX is spilling over into other cryptos,” Edward Moya, Oanda’s senior markets analyst, said in a note Wednesday afternoon. “FTX was viewed as one of the so-called safe crypto players, and its demise is raising concerns that other key crypto companies could be vulnerable here.”

Read more: Crypto Bank Silvergate’s Stock Defended By Analysts