Cryptocurrencies bounced back Tuesday morning in New York after a prolonged decline as traders adopted an immediately bullish stance to a sudden truce between the heads of exchanges Binance and FTX.
Bitcoin and ether initially dipped on the day, posting losses of 6.3% and 8.9%, respectfully. The two largest digital assets then sharply rebounded and posted only 1.9% and 1.5% losses, respectively — after a Twitter thread from FTX’s Sam Bankman-Fried outlining a preliminary deal for Binance to acquire FTX outright. It appeared to mark an abrupt end to the recent conflict from Binance CEO Changpeng “CZ” Zhao over FTX’s native token, FTT.
Pending due diligence, the arrangement would not affect the US arms of either business. The move, initially, was attributed to mounting liquidity issues at the apparently cash-strapped FTX.
Source: https://blockworks.co/binance-buying-ftx-news-enough-to-pull-crypto-back/