FTX Fallout Worsens as Crypto Market Plunges $300B in Black Monday Sell-Off

The cryptocurrency market experienced a severe downturn over the weekend, with Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) leading a massive $1.4 billion liquidation event. Dubbed ’Crypto’s Black Monday,’ the sell-off erased over $300 billion in market capitalization, dropping the total crypto market value to $2.5 trillion—a 10.8% decline. The crash coincides with ongoing fallout from the FTX collapse, exacerbating fears among traders and investors. This article delves into the key drivers behind the market turmoil and its implications for the broader crypto ecosystem.

Crypto Today: BTC, ETH, and XRP Lead $1.4B Capitulation on Black Monday

Cryptocurrencies joined the global Black Monday sell-off with market capitalization declining 10.8% to hit $2.5 trillion. BTC, ETH, XRP, and SOL traders led the losers as crypto market liquidations crossed $1.4 billion in the last 24 hours. The crypto market nosedived over the weekend, shedding over $300 billion since Friday. This is what some traders on social media are terming crypto’s Black Monday. Additionally, the FTX bankruptcy estate denied payout claims of over 400,000 customers worth over $2.5 billion due to KYC non-compliance.

FTX Unstakes 186,000 SOL, Potential Market Impact

FTX and Alameda have unstaked 186,000 SOL worth approximately $21.61 million. The staking wallet still holds 5.36 million SOL worth around $621.61 million. Solana price could experience volatility if FTX sells the unstaked SOL in the open market. Despite this, Solana (SOL) is currently trading at $117.31, marking a 3.4% increase from the previous day’s open. SOL has an improving technical structure, but the news about the bankrupt FTX exchange and its trading arm could affect its price.