Cryptos attempt to steady as Binance-FTX deal chills market

Cryptocurrencies were jittery and groping for a floor on Wednesday, after a sharp and broad drawdown when nerves about the stability of exchange FTX turned to a rush of withdrawals and ultimately a bailout deal from bigger rival Binance.

Bitcoin, the biggest cryptocurrency by market value, was down 2 per cent at $18,250, after a 10 per cent plunge on Tuesday that marked its worst day since mid-August. Ether, the next largest, has lost nearly 18 per cent since early Tuesday.

The market focus was, however, on FTT, the token tied to FTX, whose financials have been the source of market angst since last week. FTT collapsed by 72 per cent on Tuesday and was down a further 5 per cent at a two-year low of $4.61 on Wednesday.