By Frances Yue
Crypto company shares and funds closed sharply lower on Tuesday as bitcoin dropped briefly to a two-year low, even though the three major U.S. equity indexes ended higher.
Bitcoin tumbled to as low as $17,484 Tuesday, the lowest level since Nov. 2020, after Binance, the world's largest crypto exchange, said it had signed a letter of intent to acquire the non-U.S. assets of rival FTX, which faces a "significant liquidity crunch."
Read:Bitcoin falls to two-year low after crypto exchange Binance proposed to buy rival FTX
Bitcoin lost over 12% to around $18,374 over the past 24 hours, according to CoinDesk data. Ether fell 17.6% over the past 24 hours. The 50 largest cryptocurrencies, except some dollar-pegged stablecoins, are all in red Tuesday.
Shares in Crypto exchange Coinbase(COIN)closed down 10.6% at around $50.92, according to Dow Jones Market data. MicroStrategy (MSTR) finished 21% lower at around $211.8.
Mining company Riot Blockchain (RIOT) shares went down 7.4% to around $5.30, and Marathon Digital Holdings (MARA) shares lost 5.2% to $9.96. Another miner, Ebang International Holdings Inc.(EBON) shares dropped 1.4% to around $0.31.
Among crypto funds, ProShares's Bitcoin Strategy ETF (BITO) plummeted 13.2% to $11.15, while its Short Bitcoin Strategy ETF (BITI) rallied 13.2% to $40.06. Valkyrie Bitcoin Strategy ETF (BTF) tanked 13.5% to $6.94, and Grayscale Bitcoin Trust (GBTC) dived 12.5% to $10.55.
(END) Dow Jones Newswires
November 08, 2022 16:22 ET (21:22 GMT)
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