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Bitcoin, Crypto-Linked Equities Bounce as Binance/FTX Deal Stems Panic; Analysts Weigh In

Crypto stocks including Coinbase and MicroStrategy fell as traders assess potential contagion from Alameda’s balance sheet.Read MoreCoinDesk

Bitcoin (BTC) has retaken the $20,000 level and crypto-related stocks like Coinbase (COIN) and MicroStrategy (MSTR) have sharply narrowed losses on Tuesday after Binance CEO Changpeng Zhao announced the outline of a deal for his exchange to purchase rival FTX.

Bitcoin (BTC) which had sunk to the low-$19,000 area, has bounced back to $20,500, with similar price action seen for ether (ETH).

Among stocks, Coinbase (COIN) had plunged below $50 per share for the first time this summer, but has bounced back to $55.66 at press time, now down 2.4% on the session. MicroStrategy (MSTR) has narrowed its loss by half, now lower by 7.7% on the day.

Brokerage Robinhood (HOOD) – of which FTX CEO Sam Bankman-Fried owns a 7.6% stake in – had been down as much as 10%, but has trimmed that to a 3.5% decline.

The speculation over Bankman-Fried’s FTX started after CoinDesk reported last week that a notable portion of sister company Alameda’s balance sheet was made up of FTT, which is the FTX exchange’s in-house token.

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