Bitcoin (BTC), ether (ETH) drop as FTX crash ripples through market

The collapse of FTX sent shockwaves through the cryptocurrency industry. The price of bitcoin and other major digital coins fell sharply as problems at FTX surfaced.

Jakub Porzycki | Nurphoto | Getty Images

Bitcoin hovered around a one-week low on Monday and other major cryptocurrencies fell sharply as the impact of FTX’s dramatic collapse continues to ripple through the market.

Bitcoin fell 3.6% to trade around $15,990.89 as of 3:40 a.m. ET, according to data from CoinDesk. Ether fell 7% to $1,120.61.

The cryptocurrency market has come under pressure over the past couple of weeks as issues at major exchange FTX came to light.

Since Nov. 6 — the day Binance CEO Changpeng Zhao said his exchange would liquidate its FTT tokens — the crypto market has lost over $260 billion in value.

FTT is the native token of FTX’s crypto exchange and Zhao’s decision to sell FTT triggered the collapse of FTX, which has since filed for bankruptcy. Binance was a rival of FTX.

New FTX CEO John Ray said on Saturday that the exchange was looking to sell or restructure its global empire.

The company owes its major creditors some $3 billion.

Crypto markets remain nervous as it is unclear how the FTX saga will end and if there will be any further contagion in the industry.

“The market is in a wait and watch mode to see if there are any other entities that may fall as a result of exposure to FTX,” Vijay Ayyar, vice president of corporate development and vice president of business development, told CNBC. international at Crypto Exchange Luno.

Investors have been burned by a number of high-profile crypto failures this year, which have had significant ripple effects.

Earlier this year, the collapse of terraUSD, a type of cryptocurrency known as an algorithmic stablecoin, impacted a number of companies and contributed to the downfall of leading hedge fund Three Arrows Capital.

Amid the turmoil of FTX’s collapse, around $477 million in crypto assets were drained from the exchange’s accounts in a suspected hack, according to blockchain analytics firm Elliptic. FTX admitted that “unauthorized transactions” had taken place, but did not provide details on the amount of money moved.

Blockchain analytics firm Chainalysis said on Sunday that the stolen funds “are on the move.”

The hacker began dumping some of his ether holdings into other assets, according to public blockchain records of the account believed to be linked to the person. This could be one of the reasons why ether is falling more steeply than bitcoin.

“This obviously adds direct selling pressure on Ethereum and it has affected bitcoin and other tokens,” said Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank.

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