Bitcoin plunges as Binance walks away from FTX bailout. Is this the new crypto crisis?

Cryptocurrencies across the board are taking a massive hit with Bitcoin reaching a yearly low after the third-largest crypto exchange FTX Trading is reportedly experiencing a liquidity crisis with regulators now swooping in.

Bitcoin plunged below the $16,000 mark (€16,000) on Thursday, recovering slightly on Friday to $17,000 (€17,000), with other altcoins following the dismal pattern. Some fear this could be the next Terra Luna saga, causing many to lose their savings.

Matters were made much worst after the largest crypto exchange Binance reversed its intent to buy its rival, the non-US unit of FTX, because, according to Binance CEO Changpeng Zhao, (better known as CZ), FTX is experiencing a "significant liquidity crunch".